Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2022 | Aug. 03, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MESA | |
Title of 12(b) Security | Common Stock, no par value | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | NV | |
Entity File Number | 001-38626 | |
Entity Tax Identification Number | 85-0302351 | |
Entity Address, Address Line One | 410 North 44th Street | |
Entity Address, Address Line Two | Suite 700 | |
Entity Address, City or Town | Phoenix | |
Entity Address, Postal Zip Code | 85008 | |
City Area Code | 602 | |
Local Phone Number | 685-4000 | |
Entity Address, State or Province | AZ | |
Entity Registrant Name | MESA AIR GROUP, INC. | |
Entity Central Index Key | 0000810332 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 36,295,201 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 54,448 | $ 120,517 |
Restricted cash | 3,348 | 3,350 |
Receivables, net | 4,050 | 3,167 |
Expendable parts and supplies, net | 26,341 | 24,467 |
Prepaid expenses and other current assets | 7,234 | 6,885 |
Total current assets | 95,421 | 158,386 |
Property and equipment, net | 1,072,826 | 1,151,891 |
Intangible assets, net | 6,026 | 6,792 |
Lease and equipment deposits | 6,972 | 6,808 |
Operating lease right-of-use assets | 65,878 | 93,100 |
Deferred heavy maintenance, net | 6,848 | 3,499 |
Assets held for sale | 36,528 | |
Other assets | 29,686 | 36,121 |
Total assets | 1,320,185 | 1,456,597 |
Current liabilities: | ||
Current portion of long-term debt and finance leases | 112,776 | 111,710 |
Current portion of deferred revenue | 726 | 6,298 |
Current maturities of operating leases | 16,854 | 32,652 |
Accounts payable | 66,811 | 61,476 |
Accrued compensation | 10,781 | 12,399 |
Other accrued expenses | 32,322 | 33,657 |
Total current liabilities | 240,270 | 258,192 |
Noncurrent liabilities: | ||
Long-term debt and finance leases, excluding current portion | 523,231 | 539,700 |
Noncurrent operating lease liabilities | 20,585 | 33,991 |
Deferred credits | 3,295 | 3,934 |
Deferred income taxes | 50,803 | 69,940 |
Deferred revenue, net of current portion | 21,994 | 28,202 |
Other noncurrent liabilities | 36,971 | 34,591 |
Total noncurrent liabilities | 656,879 | 710,358 |
Total liabilities | 897,149 | 968,550 |
Commitments and contingencies (Note 16) | ||
Stockholders' equity: | ||
Preferred stock of no par value, 5,000,000 shares authorized; no shares issued and outstanding | ||
Common stock of no par value and additional paid-in capital, 125,000,000 shares authorized; 36,292,401 (2022) and 35,958,759 (2021) shares issued and outstanding, 4,899,497 (2022) and 4,899,497 (2021) warrants issued and outstanding | 258,403 | 256,372 |
Retained earnings | 164,633 | 231,675 |
Total stockholders' equity | 423,036 | 488,047 |
Total liabilities and stockholders' equity | $ 1,320,185 | $ 1,456,597 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Sep. 30, 2021 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 36,292,401 | 35,958,759 |
Common stock, shares outstanding | 36,292,401 | 35,958,759 |
Common stock, warrants issued | 4,899,497 | 4,899,497 |
Common stock, warrants outstanding | 4,899,497 | 4,899,497 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating revenues: | ||||
Total operating revenues | $ 134,397 | $ 125,157 | $ 405,367 | $ 372,808 |
Operating expenses: | ||||
Flight operations | 43,254 | 41,314 | 133,262 | 115,681 |
Maintenance | 49,694 | 51,986 | 156,032 | 156,623 |
Aircraft rent | 9,299 | 9,648 | 28,319 | 29,688 |
General and administrative | 11,112 | 12,087 | 31,550 | 36,324 |
Depreciation and amortization | 20,103 | 20,933 | 61,878 | 62,108 |
Lease termination | 4,508 | |||
Impairment of assets held for sale | 39,475 | |||
Other operating expenses | 722 | 916 | 3,379 | 3,148 |
Government grant recognition | (26,101) | (93,379) | ||
Total operating expenses | 134,184 | 110,783 | 453,895 | 314,701 |
Operating income (loss) | 213 | 14,374 | (48,528) | 58,107 |
Other income (expense), net: | ||||
Interest expense | (8,716) | (8,627) | (24,766) | (26,464) |
Interest income | 24 | 82 | 117 | 287 |
Loss on investments, net | (3,926) | (12,649) | ||
Other income (expense), net | (73) | (28) | (203) | 389 |
Total other expense, net | (12,691) | (8,573) | (37,501) | (25,788) |
Income (loss) before taxes | (12,478) | 5,801 | (86,029) | 32,319 |
Income tax expense (benefit) | (2,493) | 1,525 | (18,987) | 8,236 |
Net income (loss) and comprehensive income (loss) | $ (9,985) | $ 4,276 | $ (67,042) | $ 24,083 |
Net income (loss) per share attributable to common shareholders | ||||
Basic | $ (0.28) | $ 0.12 | $ (1.86) | $ 0.68 |
Diluted | $ (0.28) | $ 0.11 | $ (1.86) | $ 0.62 |
Weighted-average common shares outstanding | ||||
Basic | 36,183 | 35,769 | 36,064 | 35,642 |
Diluted | 36,183 | 39,513 | 36,064 | 38,811 |
Contract Revenue [Member] | ||||
Operating revenues: | ||||
Total operating revenues | $ 118,899 | $ 109,654 | $ 367,781 | $ 318,524 |
Pass Through and Other Revenue [Member] | ||||
Operating revenues: | ||||
Total operating revenues | $ 15,498 | $ 15,503 | $ 37,586 | $ 54,284 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Number of Warrants [Member] | Common Stock and Additional Paid-In Capital [Member] | Retained Earnings [Member] |
Beginning balance at Sep. 30, 2020 | $ 457,859 | $ 242,772 | $ 215,087 | ||
Beginning balance, shares at Sep. 30, 2020 | 35,526,918 | ||||
Stock compensation expense | 850 | 850 | |||
Repurchased shares | (19) | (19) | |||
Repurchased shares, shares | (2,256) | ||||
Restricted shares issued, shares | 7,500 | ||||
Issuance of warrants, net of issuance costs | 11,489 | 11,489 | |||
Issuance of warrants, net of issuance costs, shares | 4,899,497 | ||||
Net income (loss) | 14,118 | 14,118 | |||
Ending balance at Dec. 31, 2020 | 484,297 | 255,092 | 229,205 | ||
Ending balance, shares at Dec. 31, 2020 | 35,532,162 | 4,899,497 | |||
Beginning balance at Sep. 30, 2020 | 457,859 | 242,772 | 215,087 | ||
Beginning balance, shares at Sep. 30, 2020 | 35,526,918 | ||||
Net income (loss) | 24,083 | ||||
Ending balance at Jun. 30, 2021 | 494,667 | 255,497 | 239,170 | ||
Ending balance, shares at Jun. 30, 2021 | 35,891,029 | 4,899,497 | |||
Beginning balance at Dec. 31, 2020 | 484,297 | 255,092 | 229,205 | ||
Beginning balance, shares at Dec. 31, 2020 | 35,532,162 | 4,899,497 | |||
Stock compensation expense | 808 | 808 | |||
Repurchased shares | (157) | (157) | |||
Repurchased shares, shares | (14,680) | ||||
Restricted shares issued, shares | 124,609 | ||||
Employee share purchases | 207 | 207 | |||
Employee share purchases, shares | 58,070 | ||||
Net income (loss) | 5,689 | 5,689 | |||
Ending balance at Mar. 31, 2021 | 490,844 | 255,950 | 234,894 | ||
Ending balance, shares at Mar. 31, 2021 | 35,700,161 | 4,899,497 | |||
Stock compensation expense | 756 | 756 | |||
Repurchased shares | (1,209) | (1,209) | |||
Repurchased shares, shares | (122,960) | ||||
Restricted shares issued, shares | 313,828 | ||||
Net income (loss) | 4,276 | 4,276 | |||
Ending balance at Jun. 30, 2021 | 494,667 | 255,497 | 239,170 | ||
Ending balance, shares at Jun. 30, 2021 | 35,891,029 | 4,899,497 | |||
Beginning balance at Sep. 30, 2021 | 488,047 | 256,372 | 231,675 | ||
Beginning balance, shares at Sep. 30, 2021 | 35,958,759 | 4,899,497 | |||
Stock compensation expense | 716 | 716 | |||
Repurchased shares | (15) | (15) | |||
Repurchased shares, shares | (2,275) | ||||
Restricted shares issued, shares | 7,500 | ||||
Net income (loss) | (14,274) | (14,274) | |||
Ending balance at Dec. 31, 2021 | 474,474 | 257,073 | 217,401 | ||
Ending balance, shares at Dec. 31, 2021 | 35,963,984 | 4,899,497 | |||
Beginning balance at Sep. 30, 2021 | 488,047 | 256,372 | 231,675 | ||
Beginning balance, shares at Sep. 30, 2021 | 35,958,759 | 4,899,497 | |||
Repurchased shares | $ (400) | ||||
Net income (loss) | (67,042) | ||||
Ending balance at Jun. 30, 2022 | 423,036 | 258,403 | 164,633 | ||
Ending balance, shares at Jun. 30, 2022 | 36,292,401 | 4,899,497 | |||
Beginning balance at Dec. 31, 2021 | 474,474 | 257,073 | 217,401 | ||
Beginning balance, shares at Dec. 31, 2021 | 35,963,984 | 4,899,497 | |||
Stock compensation expense | 671 | 671 | |||
Repurchased shares | (60) | (60) | |||
Repurchased shares, shares | (13,421) | ||||
Restricted shares issued, shares | 122,594 | ||||
Employee share purchases | 239 | 239 | |||
Employee share purchases, shares | 53,567 | ||||
Net income (loss) | (42,783) | (42,783) | |||
Ending balance at Mar. 31, 2022 | 432,541 | 257,923 | 174,618 | ||
Ending balance, shares at Mar. 31, 2022 | 36,126,724 | 4,899,497 | |||
Stock compensation expense | 719 | 719 | |||
Repurchased shares | (339) | (339) | |||
Repurchased shares, shares | (116,455) | ||||
Restricted shares issued | 100 | 100 | |||
Restricted shares issued, shares | 282,132 | ||||
Net income (loss) | (9,985) | (9,985) | |||
Ending balance at Jun. 30, 2022 | $ 423,036 | $ 258,403 | $ 164,633 | ||
Ending balance, shares at Jun. 30, 2022 | 36,292,401 | 4,899,497 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (67,042) | $ 24,083 |
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | ||
Depreciation and amortization | 61,878 | 62,108 |
Stock compensation expense | 2,106 | 2,414 |
Loss on investments, net | 12,649 | |
Deferred income taxes | (19,137) | 8,030 |
Amortization of deferred credits | (639) | (2,471) |
Amortization of debt discount and issuance costs and accretion of interest into long-term debt | 8,151 | 8,185 |
Lease termination | 4,508 | |
Impairment of assets held for sale | 39,475 | |
Other | 764 | (732) |
Changes in assets and liabilities: | ||
Receivables | (883) | 8,765 |
Expendable parts and supplies | (2,418) | (1,894) |
Prepaid expenses and other operating assets and liabilities | (1,519) | 226 |
Accounts payable | 4,367 | (398) |
Deferred heavy maintenance, net | (4,536) | |
Deferred revenue | (11,780) | 11,993 |
Accrued expenses and other liabilities | (10,949) | 15,436 |
Operating lease right-of-use assets and liabilities | 3,097 | (9,041) |
Net cash provided by operating activities | 13,584 | 131,212 |
Cash flows from investing activities: | ||
Capital expenditures | (33,230) | (10,717) |
Investments in equity securities | (200) | |
Payments of equipment and other deposits | (6,954) | (6,954) |
Returns of equipment and other deposits | 632 | |
Net cash used in investing activities | (40,384) | (17,039) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 35,311 | 195,000 |
Proceeds from issuance of common stock under ESPP | 239 | 207 |
Principal payments on long-term debt and finance leases | (71,993) | (225,760) |
Payments of debt and warrant issuance costs | (2,414) | (1,326) |
Repurchase of stock | (414) | (1,385) |
Net cash used in financing activities | (39,271) | (33,264) |
Net change in cash, cash equivalents and restricted cash | (66,071) | 80,909 |
Cash, cash equivalents and restricted cash at beginning of period | 123,867 | 102,841 |
Cash, cash equivalents and restricted cash at end of period | 57,796 | 183,750 |
Supplemental cash flow information | ||
Cash paid for interest | 14,695 | 22,905 |
Cash paid for income taxes, net | 442 | 398 |
Operating lease payments in operating cash flows | 31,069 | 37,640 |
Supplemental non-cash operating activities | ||
Right-of-use assets obtained in exchange for lease liabilities | 5,481 | 454 |
Supplemental non-cash financing activities | ||
Investments in warrants to purchase common stock | 3,260 | 16,374 |
Debt issuance cost related to loan agreement with US Department of the Treasury | (1,887) | |
Debt discount on warrants issued with debt | 11,678 | |
Accrued capital expenditures | $ 1,407 | $ 59 |
Organization and Operations
Organization and Operations | 9 Months Ended |
Jun. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Operations | 1. Organization and Operations About Mesa Air Group, Inc. Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. ("Mesa" or the "Company") is the holding company of Mesa Airlines, Inc. ("Mesa Airlines"), a regional air carrier providing scheduled flight service to 121 cities in 41 states, the District of Columbia, the Bahamas, and Mexico as well as cargo flight services out of Cincinnati/Northern Kentucky International Airport. As of June 30, 2022, Mesa’s fleet consisted of 168 aircraft which were operated under the Company’s Capacity Purchase Agreements (“CPAs”) and Flight Services Agreement (“FSA”), leased to a third party, held for sale or maintained as operational spares, with approximately 360 daily departures and 2,600 employees. Mesa operates all of its flights as either American Eagle, United Express, or DHL Express The CPAs between us and our major partners involve a revenue-guarantee arrangement whereby the major partners pay fixed-fees for each aircraft under contract, departure, flight hour (measured from takeoff to landing, excluding taxi time) or block hour (measured from takeoff to landing, including taxi time), Impact of Pilot Shortage The length and severity of the pilot shortage, which has impacted the US passenger and cargo carriers, remains uncertain. One of the primary factors contributing to the pilot shortage is the demand for pilots at major carriers, which are hiring at an accelerated rate to backfill the thousands of pilots whom they offered early retirements to at the beginning of the pandemic. These airlines now seek to increase their capacity to meet the growing demand for air travel as the global pandemic has moderated. A primary source of pilots for the major US passenger and cargo carriers are the US regional airlines. While there is strong demand for air travel now in the United States, the exact timing and pace of a full recovery in demand remains uncertain given the significant impact of the pandemic on the overall U.S. and global economy. Air travel demand may continue to fluctuate as a result of the pandemic either moderating or becoming more extreme. Our forecasted expenses and liquidity measures may be modified as we clarify the pilot shortage recovery timing and its impact upon our block hour production. The variable revenue based on the number of block hours has been significantly impacted by pilot attrition and our corresponding shortage of trained pilots. We may experience further reductions in subsequent quarters. As a result of the pilot shortage, elevated pilot attrition and its negative impact on our financial results, we have taken, and are continuing to take, certain actions to increase liquidity and strengthen our financial position which include: • Working collaboratively with our major partners, we have and continue to address financial and operational impacts of pilot attrition, hiring and overall associated costs. • We have added flight training simulators and flight training instructors to expand our training capacity to more rapidly backfill pilots lost to attrition. • We have implemented a bonus program to attract new pilots and put in other incentives to attract and retain simulator instructors and line check airmen. • We have expanded the United Aviate program participation to include all pilots flying for Mesa allowing Mesa to attract and retain more qualified pilots. Previously, pilots had to fly under the United Express contract for a minimum of two (2) years to qualify for the flow through to United Airlines. Now, all pilots regardless of contract, are eligible to flow through to United. • We continue to evaluate other initiatives to increase pilot recruitment and accelerate training throughput. • We have formally listed 12 excess aircraft for sale to raise capital and retire debt • We have a plan to sell 18 CRJ-700 aircraft that are currently leased to a third party. • We have initiated discussions to refinance and defer repayment of our outstanding and drawn balance on our revolving credit facility with CIT Bank, N.A which is currently due in December 2022. • We have delayed and/or deferred major spending on aircraft and engine maintenance to match the current and projected level of flight activity. While there is no guarantee that these initiatives will come to fruition or otherwise achieve their desired objective, we believe it is probable that the initiatives outlined above, along with the cash flow from operating activities and cash on hand will provide us with adequate cash resources to maintain our operations and comply with our various debt and other contractual agreements, through at least the next 12 months. As of June 30, 2022, the Company has $112.8 million of principal maturity payments on long-term debt due within the next twelve months. We plan to meet these obligations with our cash on hand, ongoing cashflows from our operations, as well as the liquidity created from our plans to monetize 18 CRJ-700 aircraft, refinance our revolving credit facility, and further amend our CPAs. If our plans are not realized, this will necessitate exploring additional opportunities to create liquidity by refinancing and deferring repayment of our principal maturity payments that are due within the next twelve months. The Company continues to monitor covenant compliance with its lenders as any noncompliance could have a material impact on the Company’s financial position, cash flows and results of operations. See Sources and Uses of Cash American Capacity Purchase Agreement As of June 30, 2022, we operated 40 CRJ-900 aircraft under an Amended and Restated Capacity Purchase Agreement with American dated November 19, 2020 (as amended, the “American CPA”). In exchange for providing passenger flight services, we receive a fixed monthly minimum amount per aircraft under contract plus certain additional amounts based upon the number of flights and block hours flown during each month. In addition, we may also receive incentives or incur penalties based upon our operational performance, including controllable on-time departure (“CD0”) and controllable flight completion (“CCF”) percentages. American also reimburses us for certain costs on an actual basis, including passenger liability and hull insurance and aircraft property taxes. Other expenses, including fuel and certain landing fees, are directly paid to suppliers by American. In addition, American also provides, at no cost to us, certain ground handling and customer service functions as well as airport-related facilities and gates at American hubs and cities where we operate. The American CPA expires on December 31, 2025. Our • If either American or we become insolvent, file for bankruptcy, or fail to pay the debts as they become due , the non-defaulting party may terminate the agreement; • If either we or American fail to perform the covenants, conditions, or provisions of the American CPA, subject to certain notice and cure rights, the non-defaulting party may terminate the agreement; • If, at any time during the term of the American CPA, the number of covered aircraft is less than twenty (20); • If we are required by the United States Federal Aviation Administration (“FAA”) or the United States Department of Transportation (“DOT”) to suspend operations and we have not resumed operations within three business days, except as a result of an emergency airworthiness directive from the FAA affecting all similarly equipped aircraft ; • If either our CCF or CD0 falls below certain levels for a specified period of time; • Upon the occurrence of a force majeure event (as defined in the American CPA) that lasts for a specified period of consecutive days and affects our ability to operate scheduled flights, including a future epidemic or pandemic; • If a labor dispute affects our ability to operate over a specified number of days or we operate in violation of any existing American collective bargaining agreement; or • Upon a change in our ownership or control without the written approval of American. Under the American CPA, American had the option in its sole discretion to withdraw up to: (i) ten (10) aircraft during calendar year 2021, (ii) five (5) aircraft during each of calendar years 2022 and 2023, and (iii) during the period from January 1, 2024 to July 31, 2024, American can remove the first 20 aircraft to the extent not otherwise removed in 2021 – 2023, and thereafter American has the right to remove the remaining 20 aircraft. American also has the right and option to withdraw a specified number of aircraft upon each occurrence of the following: • If our CCF falls below certain levels for a specified period of time, American may withdraw one aircraft; • If our CD0 falls below certain levels for a specified period of time, American may withdraw one aircraft; • If we fail to satisfactorily complete established cabin interior program requirements by certain deadlines, American may withdraw one aircraft; or • If our block hour utilization falls below certain levels for a specified period of time, American may withdraw a specified number of aircraft. On June 10, 2022, we amended our American CPA, pursuant to Amendment No. 8 thereto, to modify certain commercial terms thereunder. On June 20, 2022, we amended our American CPA, pursuant to Amendment No. 9 thereto, which amended and restated Schedule 1 (Covered Aircraft) to the American CPA and set forth certain equipment modification requirements with respect to Covered Aircraft added to such Schedule. For the months of May and June 2022, we did not meet the CCF or CD0 minimum performance levels under the American CPA. The failure to meet the CCF or CD0 minimum performance levels for two (2) consecutive months under the terms of the American CPA gives American the right to remove two (2) additional aircraft from the CPA, one (1) aircraft for not meeting the CCF minimum performance level for two (2) consecutive months and one (1) aircraft for not meeting the CD0 minimum performance level for two (2) consecutive months. The Company's failure to meet the CCF or CD0 minimum performance levels for three (3) consecutive months gives American the right to terminate the CPA upon 90 days' notice and to provide a wind-down schedule. Subsequent to June 30, 2022, we entered into Amendment No. 10 to our American CPA which, among other things, reset the CCF and CD0 3-month measurement periods for purposes of American's termination rights to commence August 2022. See Note 17 - Subsequent Events for a discussion of Amendment No. 10. In addition to the foregoing, our block hour utilization has fallen below required levels in prior months, which also gives American the right to withdraw certain aircraft, subject to complying with applicable notice requirements under the American CPA. As of the date of this Quarterly Report on Form 10-Q, American has not exercised such withdrawal rights. United Capacity Purchase Agreement As of June 30, 2022, we operated 60 E-175 and 20 E-175LL aircraft under a Second Amended and Restated Capacity Purchase Agreement with United dated November 4, 2020 (as amended, the “United CPA”). In exchange for providing passenger flight services, we receive a fixed monthly minimum amount per aircraft under contract plus certain additional amounts based upon the number of flights and block hours flown and the results of passenger satisfaction surveys. United reimburses us for certain costs on an actual basis, including property tax per aircraft and passenger liability insurance. United also reimburses us on a pass-through basis for all costs related to heavy airframe and engine maintenance, landing gear, auxiliary power units ("APUs"), and component maintenance for the E-175 aircraft owned by United. Other expenses, including fuel and certain landing fees, are directly paid to suppliers by United. Under our United CPA, United owns 42 of the 60 E-175 aircraft and all of the E-175LL aircraft and leases them to us at nominal amounts. The E-175 aircraft owned by United and leased to us have terms expiring between 2024 and 2028, and the 18 E-175 aircraft owned by us have terms expiring in 2028. The E-175LL aircraft have terms expiring between 2032 and 2033. Pursuant to the United CPA, we agreed to lease our CRJ-700 aircraft to another United Express service provider for a term of nine (9) years. We ceased operating our CRJ-700 fleet in February 2021 in connection with the transfer of those aircraft into a lease agreement, and as of June 30, 2022, have entered into agreements to lease 20 of our 20 CRJ-700 aircraft. Our • If certain operational performance factors fall below a specified percentage for a specified time, subject to notice under certain circumstances; • If we fail to perform the material covenants, agreements, terms or conditions of our United CPA or similar agreements with United, subject to thirty (30) days' notice and cure rights; • If either United or we become insolvent, file bankruptcy, or fail to pay debts when due, the non-defaulting party may terminate the agreement; • If we merge with, or if control of us is acquired by another air carrier or a corporation directly or indirectly owning or controlling another air carrier; • United, subject to certain conditions, including the payment of certain costs tied to aircraft type, may terminate the agreement in its discretion, or remove E-175 aircraft from service, by giving us notice of 90 days or more • If United elects to terminate our United CPA in its entirety or permanently remove certain aircraft from service, we are permitted to return any of the affected E-175 aircraft leased from United at no cost to us; and • Commencing five (5) years after the actual in-service date, United has the right to remove the E-175 aircraft from service by giving us notice of 90 days or more, subject to certain conditions, including the payment of certain wind-down expenses plus, if removed prior to the ten (10) year anniversary of the in-service date, certain accelerated margin payments DHL Flight Services Agreement On December 20, 2019, we entered into a Flight Services Agreement with DHL (the “DHL FSA”). Under the terms of the DHL FSA, we operate three (3) Boeing 737-400F aircraft to provide cargo air transportation services. In exchange for providing cargo flight services, we receive a fee per block hour with a minimum block hour guarantee. We are eligible for a monthly performance bonus or subject to a monthly penalty based on timeliness and completion performance. Ground support expenses including fueling and airport fees are paid directly by DHL. Under our DHL FSA, DHL leases two (2) Boeing 737-400F aircraft and subleases them to us at nominal amounts. DHL reimburses us on a pass-through basis for all costs related to heavy maintenance including C-checks, off-wing engine maintenance and overhauls including life limited parts (“LLPs”), landing gear overhauls and LLPs, thrust reverser overhauls, and APU overhauls and LLPs. Certain items such as fuel, de-icing fluids, landing fees, aircraft ground handling fees, en-route navigation fees, and custom fees are paid directly to suppliers by DHL or otherwise reimbursed if incurred by us. Our DHL FSA expires five (5) years from the commencement date of the first aircraft placed into service, which was in October 2020. DHL has the option to extend the agreement with respect to one or more aircraft for a period of one year with 90 days’ advance written notice. Our • If either party fails to comply with the obligations, warranties, representations, or undertakings under the DHL FSA, subject to certain notice and cure rights; • If either party is declared bankrupt or insolvent; • If we are unable to legally operate the aircraft under the DHL FSA for a specified number of days; • At any time after the first anniversary of the commencement date of the first aircraft placed in service with 90 days’ written notice • If we fail to comply with performance standards for three consecutive measurement periods; • If we are subject to a labor incident that materially and adversely affects our ability to perform services under the DHL FSA for a specified number of days; • Upon a change in our control or ownership; and • DHL may terminate the agreement for a specific aircraft if it is subject to a total loss and we do not provide alternate services at our expense, or if the aircraft becomes unavailable for more than 30 days due to unscheduled maintenance. For the months of April, May, and June 2022, we did not meet the CCF and CA minimum performance levels under the DHL FSA. The failure to meet the minimum performance levels for three (3) consecutive months under the terms of the DHL FSA gives DHL the right to terminate the FSA. Management has received a waiver arising out of the failure to meet the aforementioned CCF and CA performance levels. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and include the accounts of the Company and its wholly owned operating subsidiaries. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification ("ASC") and Accounting Standards Update ("ASU") of the Financial Accounting Standards Board ("FASB"). All intercompany accounts and transactions have been eliminated in consolidation. Reclassifications of certain immaterial prior period amounts have been made to conform to the current period presentation. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto as of and for the year ended September 30, 2021 included in the Company's Annual Report on Form 10-K for the year ended September 30, 2021 on file with the U.S. Securities and Exchange Commission (the "SEC"). Information and footnote disclosures normally included in financial statements have been condensed or omitted in these condensed consolidated financial statements pursuant to the rules and regulations of the SEC and GAAP. These condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. The Company is an "emerging growth company," as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") and may remain an emerging growth company until the last day of its fiscal year following the fifth anniversary of the Company’s initial public offering (“IPO”), subject to specified conditions. The JOBS Act provides that an emerging growth company can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. The Company has elected to "opt out" of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies. Segment Reporting As of June 30, 2022, our chief operating decision maker was the Chief Executive Officer. While we operate under two separate capacity purchase agreements and a flight services agreement, we do not manage our business based on any performance measure at the individual contract level. Our chief operating decision maker uses consolidated financial information to evaluate our performance and allocate resources, which is the same basis on which he communicates our results and performance to our Board of Directors. Accordingly, we have a single operating and reportable segment. Use of Estimates The preparation of the Company's condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements. Actual results could differ from those estimates. Contract Revenue and Pass-through and Other Revenue We recognize contract revenue when the service is provided under our CPAs and FSA. Under the CPAs and FSA, our major partners generally pay for each departure, flight hour or block hour incurred, and an amount per aircraft in service each month with additional incentives or penalties based on flight completion, on-time performance, and other operating metrics. Our performance obligation is met as each flight is completed, and revenue is recognized and reflected in contract revenue. We recognize pass-through revenue when the service is provided under our CPAs and FSA. Pass-through revenue represents reimbursements for certain direct expenses incurred including passenger liability and hull insurance, We record deferred revenue when cash payments are received or are due from our major partners in advance of our performance. During the three and nine months ended June 30, 2022 , we recognized $ million and $ million of previously deferred revenue , respectively . Deferred revenue is recognized as flights are completed over the remaining terms of the respective contracts. The deferred revenue balance as of June 30, 2022 represents our aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are satisfied, and is expected to be recognized as revenue as follows (in thousands): Periods Ending June 30, Total Revenue 2022 (remainder of) $ 106 2023 759 2024 4,860 2025 8,282 2026 3,984 Thereafter 4,729 Total $ 22,720 A portion of our compensation under our CPAs with American and United is designed to reimburse the Company for certain aircraft ownership costs. Such costs include aircraft principal and interest debt service costs, aircraft depreciation, and interest expense or aircraft lease expense costs while the aircraft is under contract. We have concluded this component of the compensation under these agreements is lease revenue, as such agreements identify the "right of use" of a specific type and number of aircraft over a stated period of time . The lease revenue associated with our CPAs is accounted for as an operating lease and is reflected as contract revenue in the condensed consolidated statements of operations and comprehensive income (loss). We recognized $38.7 million and $41.2 million of lease revenue for the three months ended June 30, 2022 and 2021, respectively, and $118.5 million and $131.8 million during the nine months ended June 30, 2022 and 2021, respectively. We have not separately stated aircraft rental income in the condensed consolidated statements of operations and comprehensive income (loss) because the use of the aircraft is not a separate activity from the total service provided under our CPAs. We have entered into lease agreements with GoJet Airlines LLC (“GoJet”) to lease 20 CRJ-700 aircraft as of June 30, 2022. The lease agreements are accounted for as operating leases and have a term of nine (9) years beginning on the delivery date of each aircraft. Under the lease agreements, GoJet pays fixed monthly rent per aircraft and variable lease payments for supplemental rent based on monthly aircraft utilization at fixed rates. Supplemental rent payments are subject to reimbursement following GoJet’s completion of qualifying maintenance events defined in the agreements. Lease revenue for fixed monthly rent payments is recognized ratably within contract revenue. Lease revenue for supplemental rent is deferred and recognized within contract revenue We mitigate the residual asset risks through supplemental rent payments and by leasing aircraft and engine types that we can operate in the event of a default. Additionally, the leases have specified lease return condition requirements and we maintain inspection rights under the leases. As of June 30, 2022, we recognized $15.0 million of lease incentive assets, net of amortization, and $11.6 million of related lease incentive obligations for reimbursement of certain aircraft maintenance costs defined within the lease agreements. Lease incentive assets are amortized on a straight-line basis and recognized as a reduction to lease revenue over the lease term. Lease revenue recognized under the GoJet agreements, net of amortization of the lease incentive assets, was $7.1 million and $20.3 million for the three and nine months ended June 30, 2022, respectively, and $3.4 million and $4.0 million for the three and nine months ended June 30, 2021, respectively. Amounts deferred for supplemental rent payments totaled $2.6 million as of June 30, 2022. The following table summarizes future minimum rental income under operating leases related to leased aircraft that had remaining non-cancelable lease terms as of June 30, 2022 (in thousands): Periods Ending June 30, Total Payments 2022 (remainder of) $ 5,460 2023 21,840 2024 21,840 2025 21,840 2026 21,840 Thereafter 82,733 Total $ 175,553 Leases We determine if an arrangement is a lease at inception. As a lessee, we have lease agreements with lease and non-lease components and have elected to account for such components as a single lease component. Our operating lease activities are recorded in operating lease right-of-use assets, current maturities of operating leases, and noncurrent operating lease liabilities in the condensed consolidated balance sheets. Finance leases are reflected in property and equipment, net, current portion of long-term debt and finance leases, and long-term debt and finance leases, excluding current portion in the condensed consolidated balance sheets. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Certain variable lease payments are not included in the calculation of the right-of-use assets and lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. In determining the present value of lease payments, we use either the implicit rate in the lease when it is readily determinable or our estimated incremental borrowing rate, based on information available at the lease commencement. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease costs are recognized on a straight-line basis over the lease term, while finance leases result in a front-loaded expense pattern. As a lessee, we have elected a short-term lease practical expedient on all classes of underlying assets, permitting us to not apply the recognition requirements of ASC 842 to leases with terms of 12 months or less. We lease, at nominal rates, certain aircraft from United and DHL under our United CPA and DHL FSA, which are excluded from operating lease assets and liabilities as they do not represent embedded leases under ASC 842. Other than such leases at nominal amounts, approximately 11% of our aircraft are leased from third parties. All of our aircraft leases have been classified as operating leases, which results in rental payments being charged to expense over the term of the related leases. In the event that we or one of our major partners decide to exit an activity involving leased aircraft, losses may be incurred. In the event that we exit an activity that results in exit losses, these losses are accrued as each aircraft is removed from operations for early termination penalties, lease settle up and other charges. Additionally, any remaining ROU assets and lease liabilities are written off. The majority of our leased aircraft are leased through trusts that have a sole purpose to purchase, finance, and lease these aircraft to us; therefore, they meet the criteria of a variable interest entity. However, since these are single-owner trusts in which we do not participate, we are not at risk for losses and are not considered the primary beneficiary. Management believes that our maximum exposure under these leases is the remaining lease payments. Contract Liabilities Contract liabilities consist of deferred credits for cost reimbursements from major partners related to aircraft modifications and pilot training associated with capacity purchase agreements. The deferred credits are recognized over time depicting the pattern of the transfer of control of services resulting in ratable recognition of revenue over the remaining term of the capacity purchase agreements. Current and non-current deferred credits are recorded in other accrued expenses and non-current deferred credits in the condensed consolidated balance sheets. Our total current and non-current deferred credit balances at June 30, 2022 and September 30, 2021 were $4.1 million and $4.8 million, respectively. We recognized $0.2 million and $0.2 million of the deferred credits within contract revenue during the three months ended June 30, 2022 and 2021 , respectively, and $ million and $ million during the nine months ended June 30, 2022 and 2021 , respectively . Maintenance Expense We operate under an FAA approved continuous inspection and maintenance program. The cost of non-major scheduled inspections and repairs and routine maintenance costs for all aircraft and engines are charged to maintenance expense as incurred. We account for heavy maintenance and major overhaul costs on our owned E-175 fleet under the deferral method whereby the cost of heavy maintenance and major overhaul is deferred and amortized until the earlier of the end of the useful life of the related asset or the next scheduled heavy maintenance event. Amortization of heavy maintenance and major overhaul costs charged to depreciation and amortization expense was $0.5 million and $0.1 million for the three months ended June 30, 2022 and 2021, respectively, and $1.2 million and $0.1 million for the nine months ended June 30, 2022 and 2021, respectively. As of June 30, 2022 and September 30, 2021, our deferred heavy maintenance balance, net of accumulated amortization, was $6.8 million and $3.5 million, respectively. We account for heavy maintenance and major overhaul costs for all other fleets under the direct expense method whereby costs are expensed to maintenance expense as incurred, except for certain maintenance contracts where labor and materials price risks have been transferred to the service provider and require payment on a utilization basis, such as flight hours. Costs incurred for maintenance and repair for utilization maintenance contracts where labor and materials price risks have been transferred to the service provider are charged to maintenance expense based on contractual payment terms. Engine overhaul expense totaled $8.1 million and $4.0 million for the three months ended June 30, 2022 and 2021, respectively, of which $6.0 million and $2.7 million, respectively, was pass-through expense. Engine overhaul expense totaled $18.2 million and $25.3 million for the nine months ended June 30, 2022 and 2021, respectively, of which $14.5 million and $14.5 million, respectively, was pass-through expense. Airframe C-check expense totaled $18.8 million and $38.3 million for the nine months ended June 30, 2022 and 2021, respectively, of which $1.7 million and $18.3 million, respectively, was pass-through expense. Assets Held for Sale We classify assets as held for sale when our management approves and commits to a formal plan of sale that is probable of being completed within one year. Assets designated as held for sale are recorded at the lower of their current carrying value or their fair market value, less costs to sell, beginning in the period in which the assets meet the criteria to be classified as held for sale. See Note 6 for further discussion of our assets classified as held for sale as of June 30, 2022. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) to simplify the accounting for income taxes by eliminating certain exceptions allowable under the existing guidance related to the approach for intraperiod tax allocations, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. Our adoption of this guidance on October 1, 2021 did not have a material impact. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”). This ASU provides optional expedients and exceptions for a limited period of time for accounting for contracts, hedging relationships, and other transactions affected by the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued. Optional expedients can be applied through December 31, 2022. We continue to evaluate our contracts that reference LIBOR. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 9 Months Ended |
Jun. 30, 2022 | |
Risks And Uncertainties [Abstract] | |
Concentrations of Credit Risk | 4 . Concentrations of Credit Risk Financial instruments that potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents that are primarily held by financial institutions in the United States and accounts receivable. Amounts on deposit with a financial institution may at times exceed federally insured limits. We maintain our cash accounts with high credit quality financial institutions and, accordingly, minimal credit risk exists with respect to the financial institutions. As of June 30, 2022, we had $3.3 million in restricted cash. We have an agreement with a financial institution for a letter of credit facility and to issue letters of credit for particular airport authorities, worker's compensation insurance, property and casualty insurance and other business needs as required in certain lease agreements. Pursuant to the terms of this agreement, $3.3 million of outstanding letters of credit are required to be collateralized by amounts on deposit. Significant customers are those which represent more than 10% of our total revenue or net accounts receivable balance at each respective balance sheet date. All of our revenue for the three and nine months ended June 30, 2022 and 2021 was derived from the American and United CPAs, DHL FSA, and from leases of our CRJ-700 aircraft to GoJet. Substantially all of our accounts receivable at June 30, 2022 and September 30, 2021 was derived from these agreements. American accounted for approximately 46% and 45% of our total revenue for the three months ended June 30, 2022 and 2021, respectively, and 46% and 46% of our total revenue for the nine months ended June 30, 2022 and 2021, respectively. United accounted for approximately 47% and 51% of our total revenue for the three months ended June 30, 2022 and 2021, respectively, and 48% and 52% of our total revenue for the nine months ended June 30, 2022 and 2021, respectively. A termination of either the American or United CPA would have a material adverse effect on our business prospects, financial condition, results of operations, and cash flows. Amounts billed under our agreements are subject to our interpretation of the applicable agreement and are subject to audit by our major partners. Periodically, our major partners dispute amounts billed and pay amounts less than the amount billed. Ultimate collection of the remaining amounts not only depends upon the Company prevailing under the applicable audit, but also upon the financial well-being of the major partner. As such, we review amounts due based on historical collection trends, the financial condition of the major partners, and current external market factors and record a reserve for amounts estimated to be uncollectible in accordance with the applicable guidance for expected credit losses. Our allowance for doubtful accounts was not material as of June 30, 2022 or September 30, 2021. If our ability to collect these receivables and the financial viability of our major partners is materially different than estimated, our estimate of the allowance for credit losses could be materially impacted. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Jun. 30, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 5 . Intangible Assets Information about our intangible assets as of June 30, 2022 and September 30, 2021, is as follows (in thousands): June 30, September 30, 2022 2021 Customer relationship $ 43,800 $ 43,800 Accumulated amortization (37,774 ) (37,008 ) Net carrying value $ 6,026 $ 6,792 Total amortization expense recognized was $0.3 million and $0.3 million for the three months ended June 30, 2022 and 2021, respectively , and $0.8 million and $0.9 million for the nine months ended June 30, 2022 and 2021, respectively As of June 30, 2022, our intangible assets’ remaining amortization term is 13.3 years. |
Assets Held for Sale
Assets Held for Sale | 9 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Assets Held for Sale | 6. Assets Held for Sale During 2022, our management committed to a formal plan to sell certain of our CRJ-900 and CRJ-200 aircraft. The aircraft are expected to be disposed of via sale within the next 12 months. Accordingly, we determined the aircraft met the criteria to be classified as assets held for sale and have separately presented them in our condensed consolidated balance sheet at the lower of their current carrying value or their fair market value less costs to sell. The fair values are based upon observable and unobservable inputs, including recent purchase offers and market trends and conditions. The assumptions used to determine the fair value of our assets held for sale are subject to inherent uncertainty and could produce a wide range of outcomes which we will continue to monitor in future periods as new information becomes available. Prior to the ultimate sale of the assets, subsequent changes in our estimate of the fair value of our assets held for sale will be recorded as a gain or loss with a corresponding adjustment to the assets’ carrying value. In connection with the classification of these assets as held for sale, we recorded impairment losses of $39.5 million, which are reflected within impairment of assets held for sale in our condensed consolidated statements of operations and comprehensive income (loss). |
Balance Sheet Information
Balance Sheet Information | 9 Months Ended |
Jun. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Information | 7 . Balance Sheet Information Certain significant amounts included in the condensed consolidated balance sheets consisted of the following (in thousands): June 30, September 30, 2022 2021 Expendable parts and supplies, net: Expendable parts and supplies $ 31,437 $ 29,297 Less: obsolescence and other (5,096 ) (4,830 ) $ 26,341 $ 24,467 Prepaid expenses and other current assets: Prepaid aviation insurance $ 2,355 $ 2,171 Lease incentives 1,875 1,445 Other 3,004 3,269 $ 7,234 $ 6,885 Property and equipment, net: Aircraft and other flight equipment $ 1,533,992 $ 1,611,544 Other equipment 5,399 4,934 Leasehold improvements 2,776 2,776 Vehicles 993 1,184 Building 699 699 Furniture and fixtures 298 300 Total property and equipment 1,544,157 1,621,437 Less: accumulated depreciation (471,331 ) (469,546 ) $ 1,072,826 $ 1,151,891 Other assets: Investments in equity securities $ 16,586 $ 25,149 Lease incentives 13,085 10,957 Other 15 15 $ 29,686 $ 36,121 Other accrued expenses: Accrued property taxes $ 4,751 $ 8,783 Accrued interest 4,485 2,565 Accrued vacation 5,109 5,936 Other 17,977 16,373 $ 32,322 $ 33,657 Other noncurrent liabilities: Warrant liabilities $ 25,225 $ 21,964 Lease incentive obligations 6,492 6,358 Other 5,254 6,269 $ 36,971 $ 34,591 We record impairment charges on long-lived assets used in operations when events and circumstances indicate that the assets may be impaired, the undiscounted net cash flows estimated to be generated by those assets are less than the carrying amount of those assets, and the net book value of the assets exceeds their estimated fair value. We have assessed whether any impairment of our long-lived assets held and used existed and have determined that no charges were deemed necessary under applicable accounting standards as of June 30, 2022. Our assumptions about future conditions relevant to the assessment of potential impairment of our long-lived assets held and used are subjects to uncertainty, and we will continue to monitor these conditions in future periods as new information becomes available, and will update our analyses accordingly. Property and equipment, net: Depreciation of property and equipment totaled $19.3 million and $20.6 million for the three months ended June 30, 2022 and 2021, respectively , and $59.9 million and $61.2 million for the nine months ended June 30, 2022 and 2021, respectively. Investments in Equity Securities In connection with a negotiated forward purchase contract for electrically-powered vertical takeoff and landing aircraft (“eVTOL aircraft”) executed in February 2021, we obtained warrants giving us the right to acquire a number shares of common stock in Archer Aviation, Inc. (“Archer”). We estimated the initial equity warrant asset value to be $16.4 million based on publicly available information as of the grant date. In September 2021, the merger between Archer and a special purpose acquisition company (“SPAC”) was completed, resulting in a readily determinable fair value of our investments in Archer. Accordingly, gains and losses associated with changes in the fair value of our investments in Archer are measured in earnings, in accordance with ASC 321, Investments – Equity Securities The initial grant date values of the warrants were recognized as a vendor credit liability within other noncurrent liabilities. The liability related to the warrant assets will be settled in the future, as a reduction of the acquisition date value of the eVTOL aircraft contemplated in the related aircraft purchase agreement. Our investments in Archer are classified as Level 1 within the fair value hierarchy as the values are determined using quoted prices for the equity securities. In connection with a negotiated forward purchase contract for fully electric aircraft executed in July 2021, we obtained $5.0 million of preferred stock in Heart Aerospace Incorporated (“Heart”), a privately held company. Our investment in Heart does not have a readily determinable fair value, so we account for the investment using the measurement alternative under ASC 321 and measure the investment at initial cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments from the same issuer. We consider a range of factors when adjusting the fair value of these investments, including, but not limited to, the term and nature of the investment, local market conditions, values for comparable securities, current and projected operating performance, financing transactions subsequent to the acquisition of the investment, or other features that indicate a change to fair value is warranted. Any changes in fair value from the initial cost of the investment in preferred stock are recognized as increases or decreases on our balance sheet and as net gains or losses on investments in equity securities. The initial investment in preferred stock was measured at cost of $5.0 million. In connection with a negotiated forward purchase contract for hybrid-electric vertical takeoff and landing (“VTOL”) aircraft executed in February 2022, we obtained a warrant giving us the right to acquire a number of shares of common stock in the privately-held manufacturer of the VTOL aircraft. These investments do not have a readily determinable fair value, so we account for them using the measurement alternative under ASC 321 and measure the investments at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments from the same issuer. We consider a range of factors when adjusting the fair value of these investments, including, but not limited to, the term and nature of the investment, local market conditions, values for comparable securities, current and projected operating performance, financing transactions subsequent to the acquisition of the investment or other features that indicate a discount to fair value is warranted. Any changes in fair value from the grant date value of the warrant assets will be recognized as increases or decreases to the investment on our balance sheet and as net gains or losses on investments equity securities. We estimated the initial warrant asset value to be $3.2 million based on prices of similar investments in the same issuer. The grant date value of the warrants, $3.2 million, was recognized as a vendor credit liability within other noncurrent liabilities. The liability related to the warrant assets will be settled in the future, as a reduction of the acquisition date value of the VTOL aircraft contemplated in the related forward purchase agreement. Total net losses on our investments in equity securities totaled $3.9 million and $12.6 million during the three and nine months ended June 30, 2022, respectively, and are reflected in loss on investments, net in our condensed consolidated statements of operations and comprehensive income (loss). As of June 30, 2022, the aggregate carrying amount of our investments in equity securities was $16.0 million, and the carrying amount of our investments without readily determinable fair values was $9.6 million. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8 . Fair Value Measurements Fair value is an exit price representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Accounting standards include disclosure requirements relating to the fair values used for certain financial instruments and establish a fair value hierarchy. The hierarchy prioritizes valuation inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of three levels: Level 1 — Observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2 — Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3 — Unobservable inputs in which there is little or no market data, requiring an entity to develop its own assumptions. Other than our assets held for sale and investments in equity securities described in Notes 6 and 7, respectively, we did not measure any of our assets or liabilities at fair value on a recurring or nonrecurring basis as of June 30, 2022 and September 30, 2021. The carrying values reported in the condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value because of the immediate or short-term maturity of these financial instruments. Our debt agreements are not traded on an active market. We have determined the estimated fair value of our debt to be Level 3, as certain inputs used to determine the fair value of these agreements are unobservable and, therefore, could be sensitive to changes in inputs. We utilize the discounted cash flow method to estimate the fair value of Level 3 debt. The carrying value and estimated fair value of our total long-term debt, including current maturities, were as follows (in millions): June 30, 2022 September 30, 2021 Carrying Fair Carrying Fair Value Value Value Value Long-term debt and finance leases, including current maturities ( 1) $ 653.4 $ 585.9 $ 670.3 $ 676.8 (1) Current and prior period long-term debts' carrying and fair values exclude net debt issuance costs. |
Long-Term Debt, Finance Leases,
Long-Term Debt, Finance Leases, and Other Borrowings | 9 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Finance Leases and Other Borrowings | 9 . Long-Term Debt, Finance Leases, and Other Borrowings Long-term debt as of June 30, 2022 and September 30, 2021, consisted of the following (in thousands): June 30, September 30, 2022 2021 Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2027 (1) $ 77,058 $ 86,551 Notes payable to secured parties, collateralized by the underlying aircraft, due 2028 (2) 141,690 152,100 Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2028 (3) 110,892 122,762 Other obligations due to financial institutions, collateralized by the underlying equipment, due 2023 and 2024 (4) 18,481 4,581 Notes payable to financial institution, collateralized by the underlying equipment, due 2024 (5) 31,557 45,559 Notes payable to financial institution, collateralized by the underlying aircraft, due 2023 (6) 17,500 30,625 Notes payable to financial institution due 2023 (7) 2,500 4,000 Revolving credit facility ( 8) 15,630 22,930 Notes payable to U.S. Treasury due 2025 (9) 204,947 201,227 Notes payable to financial institution, collateralized by the underlying equipment, due 2027 (10) 33,141 — Gross long-term debt, including current maturities 653,396 670,335 Less unamortized debt issuance costs (9,522 ) (9,295 ) Less notes payable warrants (7,867 ) (9,630 ) Net long-term debt, including current maturities 636,007 651,410 Less current portion, net of unamortized debt issuance costs (112,776 ) (111,710 ) Net long-term debt $ 523,231 $ 539,700 ( 1 ) In fiscal 2015, we financed seven CRJ-900 aircraft with $170.2 million in debt. The senior notes payable of $154.7 million bear interest at monthly LIBOR plus 2.71% and require monthly principal and interest payments. The subordinated notes payable are noninterest-bearing and become payable in full on the last day of the term of the notes. We imputed an interest rate of 6.25% on the subordinated notes payable and recorded a related discount of $8.1 million, which is being accreted to interest expense over the term of the notes. ( 2 ) In fiscal 2016, we financed ten E-175 aircraft with $246.0 million in debt under an EETC financing arrangement (see discussion below). The debt bears interest ranging from 4.75% to 6.25% and requires semi-annual principal and interest payments. ( 3 ) In fiscal 2016, we financed eight E-175 aircraft with $195.3 million in debt. The senior notes payable of $172.0 million bear interest at the three-month LIBOR plus a spread ranging from 2.20% to 2.32% and require quarterly principal and interest payments. The subordinated notes payable bear interest at 4.50% and require quarterly principal and interest payments. ( 4 ) In February 2018, we leased two spare engines. The leases were determined to be finance leases as the leases contain a bargain purchase option at the end of the term. Imputed interest is 9.13% and the leases require monthly payments. In April 2022, we leased a spare engine which was determined to be a finance lease. The lease requires monthly payments. In July 2022, we extended our existing two aircraft under operating leases, which were determined to be finance leases upon classification assessment. ( 5 ) In January 2019, we financed certain flight equipment with $91.2 million in debt. The debt bears interest at the monthly LIBOR plus 3.10% and requires monthly principal and interest payments. ( 6 ) In June 2019, we financed ten CRJ-700 aircraft with $70.0 million in debt, which were previously leased. The debt bears interest at the monthly LIBOR plus 5.00% and requires monthly principal and interest payments. ( 7 ) In September 2019, we financed certain flight equipment for $8.0 million. The debt bears interest at the monthly LIBOR plus 5.00% and requires monthly principal and interest payments. ( 8 ) In September 2019, we extended the term on our $35.0 million working capital draw loan by three years, which now terminates in December 2022. Interest is assessed on drawn amounts at one-month LIBOR plus 3.75%. ( 9 ) (10) In December 2021 and June 2022 , we financed the purchase of spare engines with $ million in debt . The debt bears interest at monthly LIBOR plus 4.25 % and requires monthly principal and interest payments over a term of six years. The financing arrangement allows for additional borrowings to finance future engine purchases . Principal maturities of long-term debt as of June 30, 2022, and for each of the next five years are as follows (in thousands): Periods Ending September 30, Total Principal 2022 (remainder of) $ 29,822 2023 111,432 2024 72,400 2025 63,751 2026 271,065 Thereafter 104,926 $ 653,396 The carrying value of collateralized aircraft and equipment as of June 30, 2022 was approximately $1,014.2 million. Enhanced Equipment Trust Certificate ("EETC") In December 2015, an Enhanced Equipment Trust Certificate ("EETC") pass-through trust was created to issue pass-through certificates to obtain financing for new E-175 aircraft. As of June 30, 2022, we had $141.7 million of equipment notes outstanding issued under the EETC financing included in long-term debt in the condensed consolidated balance sheets. The structure of the EETC financing consists of a pass-through trust created by Mesa to issue pass-through certificates, which represent fractional undivided interests in the pass-through trust and are not obligations of Mesa. The proceeds We evaluated whether the pass-through trust formed for the EETC financing is a Variable Interest Entity ("VIE") and required to be consolidated CIT Revolving Credit Facility On September 25, 2019, we extended the term on our $35.0 million working capital draw loan by three years, which now terminates in September 2022. Interest is assessed on drawn amounts at one-month LIBOR plus 3.75%. As of June 30, 2022, the amount outstanding on the working capital draw loan was $15.6 million. Our CIT revolving credit facility includes a minimum interest and rental coverage ratio covenant. In March and April 2022, we entered into amendments to the CIT revolving credit facility which lowered the minimum interest and rental coverage ratio covenant for the December 2021, March 2022, and June 2022 quarters. As a result, we are in compliance with this covenant. On June 30, 2022, we entered into the Second Amended and Restated Credit and Guaranty Agreement by and among Mesa Airlines and Mesa Air Group Airline Inventory Management, L.L.C., as borrowers, Mesa Air Group, as a Guarantor, the other guarantors party thereto from time to time, CIT Bank, as Administrative Agent, and the other lenders party thereto, which was effective as of June 30, 2022 and extended the maturity date of the facility by three (3) months to December 31, 2022 L oan A greement with the United States Department of the Treasury On October The Treasury Loan bears interest at a variable rate equal to (a)(i) the LIBOR rate divided by (ii) one minus the Eurodollar Reserve Percentage plus (b) 3.50%. Accrued interest on the loans is payable in arrears, or paid-in-kind by increasing the principal balance of the loan by such interest payment, on the first business day following the 14 th All principal amounts outstanding under the Treasury Loan are due and payable in a single installment on October 30, 2025. Through June 30, 2022, interest on the Treasury Loan has been paid-in-kind by increasing the principal amount of the loan by the amount of such interest due on the interest payment date. Commencing in June 2022, we initiated the payment of interest in lieu of increasing the principal amount of the loan. Our obligations under the Treasury Loan are secured by certain aircraft, aircraft engines, accounts receivable, ground service equipment, flight simulators, and tooling (collectively, the “Collateral”). The Treasury Loan requires us, under certain circumstances, including within ten (10) business days prior to the last business day of March and September of each year beginning March 2021, to appraise the value of the Collateral and recalculate the collateral coverage ratio. If the calculated collateral coverage ratio is less than 1.6 to 1.0, we are required either to provide additional Collateral (which may include cash collateral) to secure the obligations under the Treasury Loan or repay the term loans under the Treasury Loan, in such amounts that the recalculated collateral coverage ratio, after giving effect to any such additional Collateral or repayment, is at least 1.6 to 1.0. The Treasury Loan contains two financial covenants, a minimum collateral coverage ratio and a minimum liquidity level. The Treasury Loan also contains customary negative and affirmative covenants for credit facilities of this type, including, among others: (a) limitations on dividends and distributions; (b) limitations on the creation of certain liens; (c) restrictions on certain dispositions, investments, and acquisitions; (d) limitations on transactions with affiliates; (e) restrictions on fundamental changes to the business, and (f) restrictions on lobbying activities. Additionally, we are required to comply with the relevant provisions of the CARES Act, including limits on employment level reductions after September 30, 2020, restrictions on dividends and stock buybacks, limitations on executive compensation, and requirements to maintain certain levels of scheduled service. In connection with the Treasury Loan and as partial compensation to the U.S. Treasury for the provision of financial assistance under the Treasury Loan, we issued to the U.S. Treasury warrants to purchase an aggregate of 4,899,497 shares of our common stock at an exercise price of $3.98 per share, which was the closing price of the common stock on April 9, 2020. The exercise price and number of shares of common stock issuable under the warrants are subject to adjustment as a result of anti-dilution provisions contained in the warrants for certain stock issuances, dividends, and other corporate actions. The warrants expire on the fifth anniversary of the date of issuance and are exercisable either through net share settlement or net cash settlement, at our option. The fair value of the warrants was estimated using a Black-Scholes option pricing model and recorded in stockholders' equity with an offsetting debt discount to the Treasury Loan in the condensed consolidated balance sheets. In April 2022, we entered into an agreement with the U.S. Treasury to lower the minimum collateral coverage ratio covenant to 1.5 to 1.0 through September 30, 2022. As a result, we are in compliance with this covenant as of June 30, 2022 Spare Engine Financing In December 2021, we entered into a loan agreement with a financing institution to finance certain purchases of spare engines via a newly formed limited liability company (“LLC”). The loan agreement provides for aggregate borrowings of up to $54.0 million through November 2022. In December 2021, we borrowed an aggregate of $35.3 million under the loan agreement, which matures in December 2027 The newly formed LLC, which is wholly owned by Mesa, was determined to be a VIE for which we are the primary beneficiary because we have the power to direct the activities of the LLC that most significantly impact the LLC’s economic performance and the obligation to absorb losses and right to receive benefits from the LLC in our capacity as sole member of the LLC and guarantor of the borrowings. Therefore, the LLC is consolidated in our financial statements and the borrowings are reflected as long-term debt in our condensed consolidated balance sheets. The loan agreement contains a loan-to-value (“LTV”) financial covenant pursuant to which we are required to prepay certain amounts of the loan if the aggregate outstanding principal balance of the loan exceeds a specified percentage of the appraised value of the engines beginning in the 12 th As of June 30, 2022, we were in compliance with all debt covenants. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10 . Earnings Per Share Calculations of net income (loss) per common share attributable to Mesa Air Group were as follows (in thousands, except per share data): Three Months Ended June 30, Nine Months Ended June 30, 2022 2021 2022 2021 Net income (loss) attributable to Mesa Air Group $ (9,985 ) $ 4,276 $ (67,042 ) $ 24,083 Basic weighted average common shares outstanding 36,183 35,769 36,064 35,642 Add: Incremental shares for: Dilutive effect of warrants — 3,084 — 2,536 Dilutive effect of restricted stock — 660 — 633 Diluted weighted average common shares outstanding 36,183 39,513 36,064 38,811 Net income (loss) per common share attributable to Mesa Air Group: Basic $ (0.28 ) $ 0.12 $ (1.86 ) $ 0.68 Diluted $ (0.28 ) $ 0.11 $ (1.86 ) $ 0.62 Basic income or loss per common share is computed by dividing net income or loss attributable to Mesa Air Group by the weighted average number of common shares outstanding during the period. The number of incremental shares from the assumed issuance of shares relating to restricted stock and exercise of warrants is calculated by applying the treasury stock method. Share-based awards and warrants whose impact is anti-dilutive under the treasury stock method are excluded from the diluted net income or loss per share calculation. In loss periods, these incremental shares are excluded from the calculation of diluted loss per share, as the inclusion of unvested restricted stock and warrants would have an anti-dilutive effect. The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted net income (loss) per share because the effect of including such potentially dilutive shares would have been anti-dilutive: Three Months Ended June 30, Nine Months Ended June 30, 2022 2021 2022 2021 Warrants — — 1,011 — Restricted stock — — 142 — — — 1,153 — |
Common Stock
Common Stock | 9 Months Ended |
Jun. 30, 2022 | |
Stockholders Equity Note [Abstract] | |
Common Stock | 1 1 . Common Stock As discussed in Note 9, we issued warrants to the U.S. Treasury to purchase shares of our common stock, no par value, at an exercise price of $3.98 per share. The exercise price and number of shares issuable under the warrants are subject to adjustment as a result of anti-dilution provisions contained in the warrants for certain stock issuances, dividends, and other corporate actions. The warrants expire on the fifth anniversary of the date of issuance and are exercisable either through net share settlement or net cash settlement, at our option. The warrants were accounted for within equity at a grant date fair value determined under the Black-Scholes option pricing model . We have not historically paid dividends on shares of our common stock. Additionally, the Treasury Loan and our aircraft lease facility with RASPRO Trust 2005, a pass-through trust, contain restrictions that limit our ability to or prohibit us from paying dividends to holders of our common stock. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 2 . Income Taxes Our effective tax rate (ETR) from continuing operations was 19.9% and 22.1% for the three and nine months ended June 30, 2022, respectively, and 26.3% and 25.5% for the three and nine months ended June 30, 2021, respectively. The Company’s ETR during the three and nine months ended June 30, 2022 was different from the prior year tax rates primarily as a result of the vesting of stock compensation where the tax deduction state taxes differed from the book expense, changes in the valuation allowance against state net operating losses, and changes in state statutory rates. We continue to maintain a valuation allowance on a portion of our state net operating losses in jurisdictions with shortened carryforward periods or in jurisdictions where our operations have significantly decreased as compared to prior years in which the net operating losses were generated. As of September 30, 2021, we had aggregate federal and state net operating loss carryforwards of approximately $541.3 million and $235.7 million, respectively, which expire in fiscal years 2027-2038 and 2022-2041, respectively. Approximately $1.2 million of state net operating loss carryforwards are expected to expire in the current fiscal year. |
Share-Based Compensation and St
Share-Based Compensation and Stock Repurchases | 9 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation and Stock Repurchases | 1 3 . Share-Based Compensation and Stock Repurchases Restricted Stock We grant restricted stock units (“RSUs”) as part of our long-term incentive compensation to employees and non-employee members of the Board of Directors. RSUs generally vest over a period of 3 to 5 years for employees and one year for members of the Board of Directors. The restricted common stock underlying RSUs are not deemed issued or outstanding upon grant, and do not carry any voting rights. The restricted share activity for the nine months ended June 30, 2022 is summarized as follows: Weighted- Average Number Grant Date of Shares Fair Value Restricted shares unvested at September 30, 2021 1,006,206 $ 6.22 Granted 664,414 $ 3.46 Vested (412,226 ) $ 6.28 Forfeited (28,695 ) $ 10.08 Restricted shares unvested at June 30, 2022 1,229,699 $ 4.62 As of June 30, 2022, there was $3.8 million of total unrecognized compensation cost related to unvested share-based compensation arrangements, which is expected to be recognized over a weighted-average period of 1.6 years. Compensation cost for share-based awards is recognized on a straight-line basis over the vesting period. Share-based compensation expense for the three months ended June 30, 2022 and 2021 was $0.7 million and $0.7 million, respectively , and for the nine months ended June 30, 2022 and 2021 was $2.1 million and $2.4 million, respectively. We repurchased 132,151 shares of our common stock for $0.4 million to cover the income tax obligation on vested employee equity awards during the nine months ended June 30, 2022. |
Employee Stock Purchase Plan
Employee Stock Purchase Plan | 9 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock Purchase Plan | 1 4 . 2019 ESPP The Mesa Air Group, Inc. 2019 Employee Stock Purchase Plan (the "2019 ESPP” A maximum of 500,000 Mesa Air Group, Inc. ordinary shares may be issued under the 2019 ESPP. As of June 30, 2022, eligible employees purchased and we issued an aggregate of 247,761 Mesa Air Group, Inc. ordinary shares under the 2019 ESPP, 53,567 of which were purchased and issued during the nine months ended June 30, 2022 |
Leases
Leases | 9 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | 1 5 . Leases As of June 30, 2022, we leased 20 aircraft, airport facilities, office space, and other property and equipment under non-cancelable operating leases. The leases generally require us to pay all taxes, maintenance, insurance, and other operating expenses. Rental expense is recognized on a straight-line basis over the lease term, net of lessor rebates and other incentives. We expect that, in the normal course of business, such operating leases that expire will be renewed or replaced by other leases, or the property may be purchased rather than leased. Aggregate rental expense under all operating aircraft, equipment and facility leases totaled approximately $10.8 million and $11.3 million for the three months ended June 30, 2022 and 2021, respectively , and $33.1 million and $34.0 million for the nine months ended June 30, 2022 and 2021, respectively The components of our operating lease costs were as follows (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2022 2021 2022 2021 Operating lease costs $ 9,534 $ 9,194 $ 28,678 $ 28,599 Variable and short-term lease costs 1,311 2,099 4,392 5,434 Total lease costs $ 10,845 $ 11,293 $ 33,070 $ 34,033 As of June 30, 2022, our operating leases have a remaining weighted average lease term of 3.8 years and our operating lease liabilities were measured using a weighted average discount rate of 4.5%. During the nine months ended June 30, 2022, we recorded a $0.2 million impairment of certain operating lease ROU assets associated with the abandonment of a leased facility. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 6 . Commitments and Contingencies Engine Purchase Commitments On February 26, 2021, the Company and General Electric Company (“GE”), acting through its GE-Aviation business unit, entered into an Amended and Restated Letter Agreement No. 13-3. We agreed to purchase and take delivery of ten (10) new CF34-8C5 or CF34-8E5 engines with delivery dates starting from July 1, 2021 through November 1, 2022. The total purchase commitment related to these ten (10) engines is approximately $52.2 million. We also have options to purchase an additional ten (10) similar engines beyond 2022. As of June 30, 2022, we have purchased seven (7) of the engines pursuant to the Amended and Restated Letter Agreement No. 13-3 with delivery of the remaining three (3) engines expected to take place during calendar year 2022. If we fail to accept delivery of the spare engines when duly tendered, we may be assessed a minimum cancellation charge based on the engine price determined as of the date of scheduled engine delivery. Litigation We are subject to two violations of the Securities Act of 1933, as amended, for allegedly making materially false and misleading statements in, or omitting material information from, our IPO registration statement. On March 2, 2022, the parties in the federal lawsuit attended a mediation and reached an agreement in principle to settle all claims asserted in that action for the sum of $5 million, which will be paid by the Company’s directors’ and officers’ insurance carriers. The settlement is subject to preliminary and final approval by the federal court. The motion for preliminary approval was filed on May 6, 2022, and no objections to the settlement were filed by the deadline for such objections. The parties are waiting for the Court to schedule a date for the preliminary approval hearing. If preliminary and final approval is obtained, the claims of all putative class members, whether asserted in the federal or state actions, will be extinguished, unless and only to the extent that a particular class member takes affirmative steps to have its claims excluded. In addition, we are subject to certain legal actions which we consider routine to our business activities. As of June 30, 2022, our management believed the ultimate outcomes of other routine legal matters are not likely to have a material adverse effect on our financial position, liquidity or results of operations. We are involved in various legal proceedings (including, but not limited to, insured claims) and FAA civil action proceedings that we do not believe will have a material adverse effect upon our business, financial condition, or results of operations, although no assurance can be given to the ultimate outcome of any such proceedings. Electric Aircraft Forward Purchase Commitments As described in Note 7, in February 2021, we entered into a forward purchase contract with Archer for a number of eVTOL aircraft. The aggregate base commitment for the eVTOL aircraft is $200.0 million, with an option to purchase additional aircraft. Our obligation to purchase the eVTOL aircraft is subject to the Company and Archer first agreeing in the future to a number of terms and conditions, which may or may not be met. As described in Note 7, in July 2021, we entered into a forward purchase contract with Heart for a number of fully electric aircraft. The maximum aggregate base commitment for the aircraft is $1,200.0 million, with an option to purchase additional aircraft. Our obligation to purchase the aircraft is subject to the Company and Heart first agreeing in the future to a number of terms and conditions, which may or may not be met. Other Commitments We have certain |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 1 7 . Subsequent Events On July 22, 2022, we amended our United CPA, pursuant to Amendment No. 3 thereto, to among other things, (a) temporarily modify an operational performance metric and related incentives, and (b) amend certain commercial terms set forth in specified schedules to the CPA. On July 28, 2022, we amended our American CPA, pursuant to Amendment No. 10 thereto, to, among other things, (a) modified certain commercial terms, (b) provide that, commencing with calendar months after January 1, 2022, during any calendar month in which a Notification Shortfall (as defined in the CPA) occurs, bonuses and rebates will not be assessed, (c) reset the CCF and CD0 3-month measurement periods for purposes of American’s termination rights under the CPA to commence August 2022, and (d) amended certain other amounts payable to us thereunder. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and include the accounts of the Company and its wholly owned operating subsidiaries. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification ("ASC") and Accounting Standards Update ("ASU") of the Financial Accounting Standards Board ("FASB"). All intercompany accounts and transactions have been eliminated in consolidation. Reclassifications of certain immaterial prior period amounts have been made to conform to the current period presentation. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto as of and for the year ended September 30, 2021 included in the Company's Annual Report on Form 10-K for the year ended September 30, 2021 on file with the U.S. Securities and Exchange Commission (the "SEC"). Information and footnote disclosures normally included in financial statements have been condensed or omitted in these condensed consolidated financial statements pursuant to the rules and regulations of the SEC and GAAP. These condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. The Company is an "emerging growth company," as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") and may remain an emerging growth company until the last day of its fiscal year following the fifth anniversary of the Company’s initial public offering (“IPO”), subject to specified conditions. The JOBS Act provides that an emerging growth company can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. The Company has elected to "opt out" of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies. |
Segment Reporting | Segment Reporting As of June 30, 2022, our chief operating decision maker was the Chief Executive Officer. While we operate under two separate capacity purchase agreements and a flight services agreement, we do not manage our business based on any performance measure at the individual contract level. Our chief operating decision maker uses consolidated financial information to evaluate our performance and allocate resources, which is the same basis on which he communicates our results and performance to our Board of Directors. Accordingly, we have a single operating and reportable segment. |
Use of Estimates | Use of Estimates The preparation of the Company's condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements. Actual results could differ from those estimates. |
Contract Revenue and Pass-through and Other Revenue | Contract Revenue and Pass-through and Other Revenue We recognize contract revenue when the service is provided under our CPAs and FSA. Under the CPAs and FSA, our major partners generally pay for each departure, flight hour or block hour incurred, and an amount per aircraft in service each month with additional incentives or penalties based on flight completion, on-time performance, and other operating metrics. Our performance obligation is met as each flight is completed, and revenue is recognized and reflected in contract revenue. We recognize pass-through revenue when the service is provided under our CPAs and FSA. Pass-through revenue represents reimbursements for certain direct expenses incurred including passenger liability and hull insurance, We record deferred revenue when cash payments are received or are due from our major partners in advance of our performance. During the three and nine months ended June 30, 2022 , we recognized $ million and $ million of previously deferred revenue , respectively . Deferred revenue is recognized as flights are completed over the remaining terms of the respective contracts. The deferred revenue balance as of June 30, 2022 represents our aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are satisfied, and is expected to be recognized as revenue as follows (in thousands): Periods Ending June 30, Total Revenue 2022 (remainder of) $ 106 2023 759 2024 4,860 2025 8,282 2026 3,984 Thereafter 4,729 Total $ 22,720 A portion of our compensation under our CPAs with American and United is designed to reimburse the Company for certain aircraft ownership costs. Such costs include aircraft principal and interest debt service costs, aircraft depreciation, and interest expense or aircraft lease expense costs while the aircraft is under contract. We have concluded this component of the compensation under these agreements is lease revenue, as such agreements identify the "right of use" of a specific type and number of aircraft over a stated period of time . The lease revenue associated with our CPAs is accounted for as an operating lease and is reflected as contract revenue in the condensed consolidated statements of operations and comprehensive income (loss). We recognized $38.7 million and $41.2 million of lease revenue for the three months ended June 30, 2022 and 2021, respectively, and $118.5 million and $131.8 million during the nine months ended June 30, 2022 and 2021, respectively. We have not separately stated aircraft rental income in the condensed consolidated statements of operations and comprehensive income (loss) because the use of the aircraft is not a separate activity from the total service provided under our CPAs. We have entered into lease agreements with GoJet Airlines LLC (“GoJet”) to lease 20 CRJ-700 aircraft as of June 30, 2022. The lease agreements are accounted for as operating leases and have a term of nine (9) years beginning on the delivery date of each aircraft. Under the lease agreements, GoJet pays fixed monthly rent per aircraft and variable lease payments for supplemental rent based on monthly aircraft utilization at fixed rates. Supplemental rent payments are subject to reimbursement following GoJet’s completion of qualifying maintenance events defined in the agreements. Lease revenue for fixed monthly rent payments is recognized ratably within contract revenue. Lease revenue for supplemental rent is deferred and recognized within contract revenue We mitigate the residual asset risks through supplemental rent payments and by leasing aircraft and engine types that we can operate in the event of a default. Additionally, the leases have specified lease return condition requirements and we maintain inspection rights under the leases. As of June 30, 2022, we recognized $15.0 million of lease incentive assets, net of amortization, and $11.6 million of related lease incentive obligations for reimbursement of certain aircraft maintenance costs defined within the lease agreements. Lease incentive assets are amortized on a straight-line basis and recognized as a reduction to lease revenue over the lease term. Lease revenue recognized under the GoJet agreements, net of amortization of the lease incentive assets, was $7.1 million and $20.3 million for the three and nine months ended June 30, 2022, respectively, and $3.4 million and $4.0 million for the three and nine months ended June 30, 2021, respectively. Amounts deferred for supplemental rent payments totaled $2.6 million as of June 30, 2022. The following table summarizes future minimum rental income under operating leases related to leased aircraft that had remaining non-cancelable lease terms as of June 30, 2022 (in thousands): Periods Ending June 30, Total Payments 2022 (remainder of) $ 5,460 2023 21,840 2024 21,840 2025 21,840 2026 21,840 Thereafter 82,733 Total $ 175,553 |
Leases | Leases We determine if an arrangement is a lease at inception. As a lessee, we have lease agreements with lease and non-lease components and have elected to account for such components as a single lease component. Our operating lease activities are recorded in operating lease right-of-use assets, current maturities of operating leases, and noncurrent operating lease liabilities in the condensed consolidated balance sheets. Finance leases are reflected in property and equipment, net, current portion of long-term debt and finance leases, and long-term debt and finance leases, excluding current portion in the condensed consolidated balance sheets. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Certain variable lease payments are not included in the calculation of the right-of-use assets and lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. In determining the present value of lease payments, we use either the implicit rate in the lease when it is readily determinable or our estimated incremental borrowing rate, based on information available at the lease commencement. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease costs are recognized on a straight-line basis over the lease term, while finance leases result in a front-loaded expense pattern. As a lessee, we have elected a short-term lease practical expedient on all classes of underlying assets, permitting us to not apply the recognition requirements of ASC 842 to leases with terms of 12 months or less. We lease, at nominal rates, certain aircraft from United and DHL under our United CPA and DHL FSA, which are excluded from operating lease assets and liabilities as they do not represent embedded leases under ASC 842. Other than such leases at nominal amounts, approximately 11% of our aircraft are leased from third parties. All of our aircraft leases have been classified as operating leases, which results in rental payments being charged to expense over the term of the related leases. In the event that we or one of our major partners decide to exit an activity involving leased aircraft, losses may be incurred. In the event that we exit an activity that results in exit losses, these losses are accrued as each aircraft is removed from operations for early termination penalties, lease settle up and other charges. Additionally, any remaining ROU assets and lease liabilities are written off. The majority of our leased aircraft are leased through trusts that have a sole purpose to purchase, finance, and lease these aircraft to us; therefore, they meet the criteria of a variable interest entity. However, since these are single-owner trusts in which we do not participate, we are not at risk for losses and are not considered the primary beneficiary. Management believes that our maximum exposure under these leases is the remaining lease payments. |
Contract Liabilities | Contract Liabilities Contract liabilities consist of deferred credits for cost reimbursements from major partners related to aircraft modifications and pilot training associated with capacity purchase agreements. The deferred credits are recognized over time depicting the pattern of the transfer of control of services resulting in ratable recognition of revenue over the remaining term of the capacity purchase agreements. Current and non-current deferred credits are recorded in other accrued expenses and non-current deferred credits in the condensed consolidated balance sheets. Our total current and non-current deferred credit balances at June 30, 2022 and September 30, 2021 were $4.1 million and $4.8 million, respectively. We recognized $0.2 million and $0.2 million of the deferred credits within contract revenue during the three months ended June 30, 2022 and 2021 , respectively, and $ million and $ million during the nine months ended June 30, 2022 and 2021 , respectively . |
Maintenance Expense | Maintenance Expense We operate under an FAA approved continuous inspection and maintenance program. The cost of non-major scheduled inspections and repairs and routine maintenance costs for all aircraft and engines are charged to maintenance expense as incurred. We account for heavy maintenance and major overhaul costs on our owned E-175 fleet under the deferral method whereby the cost of heavy maintenance and major overhaul is deferred and amortized until the earlier of the end of the useful life of the related asset or the next scheduled heavy maintenance event. Amortization of heavy maintenance and major overhaul costs charged to depreciation and amortization expense was $0.5 million and $0.1 million for the three months ended June 30, 2022 and 2021, respectively, and $1.2 million and $0.1 million for the nine months ended June 30, 2022 and 2021, respectively. As of June 30, 2022 and September 30, 2021, our deferred heavy maintenance balance, net of accumulated amortization, was $6.8 million and $3.5 million, respectively. We account for heavy maintenance and major overhaul costs for all other fleets under the direct expense method whereby costs are expensed to maintenance expense as incurred, except for certain maintenance contracts where labor and materials price risks have been transferred to the service provider and require payment on a utilization basis, such as flight hours. Costs incurred for maintenance and repair for utilization maintenance contracts where labor and materials price risks have been transferred to the service provider are charged to maintenance expense based on contractual payment terms. Engine overhaul expense totaled $8.1 million and $4.0 million for the three months ended June 30, 2022 and 2021, respectively, of which $6.0 million and $2.7 million, respectively, was pass-through expense. Engine overhaul expense totaled $18.2 million and $25.3 million for the nine months ended June 30, 2022 and 2021, respectively, of which $14.5 million and $14.5 million, respectively, was pass-through expense. Airframe C-check expense totaled $18.8 million and $38.3 million for the nine months ended June 30, 2022 and 2021, respectively, of which $1.7 million and $18.3 million, respectively, was pass-through expense. |
Assets Held for Sale | Assets Held for Sale We classify assets as held for sale when our management approves and commits to a formal plan of sale that is probable of being completed within one year. Assets designated as held for sale are recorded at the lower of their current carrying value or their fair market value, less costs to sell, beginning in the period in which the assets meet the criteria to be classified as held for sale. See Note 6 for further discussion of our assets classified as held for sale as of June 30, 2022. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Deferred Revenue Remaining Performance Obligations | The deferred revenue balance as of June 30, 2022 represents our aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are satisfied, and is expected to be recognized as revenue as follows (in thousands): Periods Ending June 30, Total Revenue 2022 (remainder of) $ 106 2023 759 2024 4,860 2025 8,282 2026 3,984 Thereafter 4,729 Total $ 22,720 |
Schedule of Future Minimum Rental Income under Non-cancelable Operating Leases | The following table summarizes future minimum rental income under operating leases related to leased aircraft that had remaining non-cancelable lease terms as of June 30, 2022 (in thousands): Periods Ending June 30, Total Payments 2022 (remainder of) $ 5,460 2023 21,840 2024 21,840 2025 21,840 2026 21,840 Thereafter 82,733 Total $ 175,553 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Information About Intangible Assets | Information about our intangible assets as of June 30, 2022 and September 30, 2021, is as follows (in thousands): June 30, September 30, 2022 2021 Customer relationship $ 43,800 $ 43,800 Accumulated amortization (37,774 ) (37,008 ) Net carrying value $ 6,026 $ 6,792 |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Certain Significant Amounts Included in Condensed Consolidated Balance Sheet | Certain significant amounts included in the condensed consolidated balance sheets consisted of the following (in thousands): June 30, September 30, 2022 2021 Expendable parts and supplies, net: Expendable parts and supplies $ 31,437 $ 29,297 Less: obsolescence and other (5,096 ) (4,830 ) $ 26,341 $ 24,467 Prepaid expenses and other current assets: Prepaid aviation insurance $ 2,355 $ 2,171 Lease incentives 1,875 1,445 Other 3,004 3,269 $ 7,234 $ 6,885 Property and equipment, net: Aircraft and other flight equipment $ 1,533,992 $ 1,611,544 Other equipment 5,399 4,934 Leasehold improvements 2,776 2,776 Vehicles 993 1,184 Building 699 699 Furniture and fixtures 298 300 Total property and equipment 1,544,157 1,621,437 Less: accumulated depreciation (471,331 ) (469,546 ) $ 1,072,826 $ 1,151,891 Other assets: Investments in equity securities $ 16,586 $ 25,149 Lease incentives 13,085 10,957 Other 15 15 $ 29,686 $ 36,121 Other accrued expenses: Accrued property taxes $ 4,751 $ 8,783 Accrued interest 4,485 2,565 Accrued vacation 5,109 5,936 Other 17,977 16,373 $ 32,322 $ 33,657 Other noncurrent liabilities: Warrant liabilities $ 25,225 $ 21,964 Lease incentive obligations 6,492 6,358 Other 5,254 6,269 $ 36,971 $ 34,591 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Estimated Fair Value of Long-term Debt, Including Current Matur | The carrying value and estimated fair value of our total long-term debt, including current maturities, were as follows (in millions): June 30, 2022 September 30, 2021 Carrying Fair Carrying Fair Value Value Value Value Long-term debt and finance leases, including current maturities ( 1) $ 653.4 $ 585.9 $ 670.3 $ 676.8 (1) Current and prior period long-term debts' carrying and fair values exclude net debt issuance costs. |
Long-Term Debt, Finance Lease_2
Long-Term Debt, Finance Leases, and Other Borrowings (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt as of June 30, 2022 and September 30, 2021, consisted of the following (in thousands): June 30, September 30, 2022 2021 Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2027 (1) $ 77,058 $ 86,551 Notes payable to secured parties, collateralized by the underlying aircraft, due 2028 (2) 141,690 152,100 Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2028 (3) 110,892 122,762 Other obligations due to financial institutions, collateralized by the underlying equipment, due 2023 and 2024 (4) 18,481 4,581 Notes payable to financial institution, collateralized by the underlying equipment, due 2024 (5) 31,557 45,559 Notes payable to financial institution, collateralized by the underlying aircraft, due 2023 (6) 17,500 30,625 Notes payable to financial institution due 2023 (7) 2,500 4,000 Revolving credit facility ( 8) 15,630 22,930 Notes payable to U.S. Treasury due 2025 (9) 204,947 201,227 Notes payable to financial institution, collateralized by the underlying equipment, due 2027 (10) 33,141 — Gross long-term debt, including current maturities 653,396 670,335 Less unamortized debt issuance costs (9,522 ) (9,295 ) Less notes payable warrants (7,867 ) (9,630 ) Net long-term debt, including current maturities 636,007 651,410 Less current portion, net of unamortized debt issuance costs (112,776 ) (111,710 ) Net long-term debt $ 523,231 $ 539,700 ( 1 ) In fiscal 2015, we financed seven CRJ-900 aircraft with $170.2 million in debt. The senior notes payable of $154.7 million bear interest at monthly LIBOR plus 2.71% and require monthly principal and interest payments. The subordinated notes payable are noninterest-bearing and become payable in full on the last day of the term of the notes. We imputed an interest rate of 6.25% on the subordinated notes payable and recorded a related discount of $8.1 million, which is being accreted to interest expense over the term of the notes. ( 2 ) In fiscal 2016, we financed ten E-175 aircraft with $246.0 million in debt under an EETC financing arrangement (see discussion below). The debt bears interest ranging from 4.75% to 6.25% and requires semi-annual principal and interest payments. ( 3 ) In fiscal 2016, we financed eight E-175 aircraft with $195.3 million in debt. The senior notes payable of $172.0 million bear interest at the three-month LIBOR plus a spread ranging from 2.20% to 2.32% and require quarterly principal and interest payments. The subordinated notes payable bear interest at 4.50% and require quarterly principal and interest payments. ( 4 ) In February 2018, we leased two spare engines. The leases were determined to be finance leases as the leases contain a bargain purchase option at the end of the term. Imputed interest is 9.13% and the leases require monthly payments. In April 2022, we leased a spare engine which was determined to be a finance lease. The lease requires monthly payments. In July 2022, we extended our existing two aircraft under operating leases, which were determined to be finance leases upon classification assessment. ( 5 ) In January 2019, we financed certain flight equipment with $91.2 million in debt. The debt bears interest at the monthly LIBOR plus 3.10% and requires monthly principal and interest payments. ( 6 ) In June 2019, we financed ten CRJ-700 aircraft with $70.0 million in debt, which were previously leased. The debt bears interest at the monthly LIBOR plus 5.00% and requires monthly principal and interest payments. ( 7 ) In September 2019, we financed certain flight equipment for $8.0 million. The debt bears interest at the monthly LIBOR plus 5.00% and requires monthly principal and interest payments. ( 8 ) In September 2019, we extended the term on our $35.0 million working capital draw loan by three years, which now terminates in December 2022. Interest is assessed on drawn amounts at one-month LIBOR plus 3.75%. ( 9 ) (10) In December 2021 and June 2022 , we financed the purchase of spare engines with $ million in debt . The debt bears interest at monthly LIBOR plus 4.25 % and requires monthly principal and interest payments over a term of six years. The financing arrangement allows for additional borrowings to finance future engine purchases . |
Schedule of Principal Maturities of Long-term Debt | Principal maturities of long-term debt as of June 30, 2022, and for each of the next five years are as follows (in thousands): Periods Ending September 30, Total Principal 2022 (remainder of) $ 29,822 2023 111,432 2024 72,400 2025 63,751 2026 271,065 Thereafter 104,926 $ 653,396 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Calculations of Net Income (Loss) Per Common Share | Calculations of net income (loss) per common share attributable to Mesa Air Group were as follows (in thousands, except per share data): Three Months Ended June 30, Nine Months Ended June 30, 2022 2021 2022 2021 Net income (loss) attributable to Mesa Air Group $ (9,985 ) $ 4,276 $ (67,042 ) $ 24,083 Basic weighted average common shares outstanding 36,183 35,769 36,064 35,642 Add: Incremental shares for: Dilutive effect of warrants — 3,084 — 2,536 Dilutive effect of restricted stock — 660 — 633 Diluted weighted average common shares outstanding 36,183 39,513 36,064 38,811 Net income (loss) per common share attributable to Mesa Air Group: Basic $ (0.28 ) $ 0.12 $ (1.86 ) $ 0.68 Diluted $ (0.28 ) $ 0.11 $ (1.86 ) $ 0.62 |
Number of Weighted-Average Potentially Dilutive Shares Excluded from Calculation of Diluted Net Income (Loss) Per Share | The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted net income (loss) per share because the effect of including such potentially dilutive shares would have been anti-dilutive: Three Months Ended June 30, Nine Months Ended June 30, 2022 2021 2022 2021 Warrants — — 1,011 — Restricted stock — — 142 — — — 1,153 — |
Share-Based Compensation and _2
Share-Based Compensation and Stock Repurchases (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Restricted Share Activity | The restricted share activity for the nine months ended June 30, 2022 is summarized as follows: Weighted- Average Number Grant Date of Shares Fair Value Restricted shares unvested at September 30, 2021 1,006,206 $ 6.22 Granted 664,414 $ 3.46 Vested (412,226 ) $ 6.28 Forfeited (28,695 ) $ 10.08 Restricted shares unvested at June 30, 2022 1,229,699 $ 4.62 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Components of Operating Lease Costs | The components of our operating lease costs were as follows (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2022 2021 2022 2021 Operating lease costs $ 9,534 $ 9,194 $ 28,678 $ 28,599 Variable and short-term lease costs 1,311 2,099 4,392 5,434 Total lease costs $ 10,845 $ 11,293 $ 33,070 $ 34,033 |
Organization and Operations - A
Organization and Operations - Additional Information (Detail) $ in Thousands | 9 Months Ended | ||
Dec. 20, 2019 Air-craft | Jun. 30, 2022 USD ($) Daily_Departure Air-craft State City Employee | Sep. 30, 2021 USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Number of aircrafts listed for sale | 12 | ||
Number of states in which entity operates | State | 41 | ||
Number of aircrafts operated | 168 | ||
Number of cities in which entity operates | City | 121 | ||
Number of daily departures | Daily_Departure | 360 | ||
Number of employees | Employee | 2,600 | ||
Principal maturity payments on long-term debt due within next twelve months | $ | $ 112,776 | $ 111,710 | |
Number of aircrafts withdrawable on conditions | 1 | ||
United capacity purchase agreement termination notice period | 30 days | ||
American Capacity Purchase Agreement [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Maximum number of aircraft withdraw in twenty twenty one | 10 | ||
Maximum number of aircraft withdraw in twenty twenty two | 5 | ||
Maximum number of aircraft withdraw in twenty twenty three | 5 | ||
Aircrafts able to be withdrawn in future under normal withdrawal rights | 20 | ||
Aircrafts able to be withdrawn in future, thereafter under normal withdrawal rights | 20 | ||
CRJ-700 Aircraft [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Number of aircrafts agreed to sell | 18 | ||
CRJ-700 Aircraft [Member] | United Capacity Purchase Agreement [Member] | United [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Number of aircrafts operated | 20 | ||
Aircraft lease term | 9 years | ||
Number of aircraft leased | 20 | ||
CRJ-900 Aircraft [Member] | American Capacity Purchase Agreement [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Number of aircrafts operated | 40 | ||
E-175 Aircraft [Member] | United Capacity Purchase Agreement [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Number of aircrafts operated | 60 | ||
E-175 Aircraft [Member] | United Capacity Purchase Agreement [Member] | United [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Number of aircrafts operated | 42 | ||
Lease expiration year | 2028 | ||
Notice period for termination of agreement | United, subject to certain conditions, including the payment of certain costs tied to aircraft type, may terminate the agreement in its discretion, or remove E-175 aircraft from service, by giving us notice of 90 days or more | ||
E-175 Aircraft [Member] | United Capacity Purchase Agreement [Member] | United [Member] | Minimum [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Lease expiration year | 2024 | ||
E-175 Aircraft [Member] | United Capacity Purchase Agreement [Member] | United [Member] | Maximum [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Lease expiration year | 2028 | ||
E175LL Aircraft [Member] | United Capacity Purchase Agreement [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Number of aircrafts operated | 20 | ||
Air crafts expiring month and year description | expiring between 2032 and 2033 | ||
E175LL Aircraft [Member] | United Capacity Purchase Agreement [Member] | United [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Notice period for termination of agreement | Commencing five (5) years after the actual in-service date, United has the right to remove the E-175 aircraft from service by giving us notice of 90 days or more, subject to certain conditions, including the payment of certain wind-down expenses plus, if removed prior to the ten (10) year anniversary of the in-service date, certain accelerated margin payments | ||
Boeing 737400F [Member] | DHL Flight Services Agreement [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Number of aircrafts operated | 3 | ||
Aircraft lease term | 5 years | ||
Number of aircraft leased | 2 | ||
Notice period for termination of agreement | At any time after the first anniversary of the commencement date of the first aircraft placed in service with 90 days’ written notice | ||
Aircraft option to extend agreement description | DHL has the option to extend the agreement with respect to one or more aircraft for a period of one year with 90 days’ advance written notice. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) Air-craft | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Deferred revenue | $ 6.8 | $ 11.8 | |||
Lease incentive assets | 15 | 15 | |||
Lease incentive obligations | 11.6 | 11.6 | |||
Amounts deferred for supplemental rent payments | 2.6 | 2.6 | |||
Current and non-current deferred credit contract liability balances | 4.1 | 4.1 | $ 4.8 | ||
Recognized deferred credits within contract revenue | 0.2 | $ 0.2 | 0.6 | $ 2.1 | |
Amortization of heavy maintenance and major overhaul costs charged to depreciation and amortization expense | 0.5 | 0.1 | 1.2 | 0.1 | |
Deferred heavy maintenance balance, net of accumulated amortization | 6.8 | 6.8 | $ 3.5 | ||
Engine overhaul expense | 8.1 | 4 | 18.2 | 25.3 | |
Engine overhaul pass-through expense | 6 | 2.7 | 14.5 | 14.5 | |
Airframe check expense | 5 | 14.1 | 18.8 | 38.3 | |
Airframe check pass-through expense | 1.3 | 5.6 | $ 1.7 | 18.3 | |
Aircraft [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage leased | 11% | ||||
GoJet Agreements [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Lease revenue recognized | $ 7.1 | 3.4 | $ 20.3 | 4 | |
CRJ 700 [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of aircraft to be leased | Air-craft | 20 | ||||
Operating lease, term of contract | 9 years | 9 years | |||
Contract Revenue [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Lease revenue | $ 38.7 | $ 41.2 | $ 118.5 | $ 131.8 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Deferred Revenue Remaining Performance Obligations (Detail) $ in Thousands | Jun. 30, 2022 USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 22,720 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-07-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 106 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 759 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 4,860 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 8,282 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 3,984 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 4,729 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Deferred Revenue Remaining Performance Obligations (Detail 1) $ in Thousands | Jun. 30, 2022 USD ($) |
Revenue Performance Obligation Satisfied Over Time [Abstract] | |
Total Revenue | $ 22,720 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Future Minimum Rental Income under Non-cancelable Operating Leases (Detail) $ in Thousands | Jun. 30, 2022 USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2022 (remainder of) | $ 5,460 |
2023 | 21,840 |
2024 | 21,840 |
2025 | 21,840 |
2026 | 21,840 |
Thereafter | 82,733 |
Total | $ 175,553 |
Concentrations of Credit Risk -
Concentrations of Credit Risk - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | |
Concentration Risk [Line Items] | |||||
Restricted cash | $ 3,348,000 | $ 3,348,000 | $ 3,350,000 | ||
Outstanding letters of credit to be collateralized by amounts on deposit | 3,300,000 | 3,300,000 | |||
Allowance for doubtful accounts | $ 0 | $ 0 | $ 0 | ||
Sales Revenue, Net [Member] | American Airlines Inc. [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 46% | 45% | 46% | 46% | |
Sales Revenue, Net [Member] | United [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 47% | 51% | 48% | 52% |
Intangible Assets - Information
Intangible Assets - Information About Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Customer relationship | $ 43,800 | $ 43,800 |
Accumulated amortization | (37,774) | (37,008) |
Net carrying value | $ 6,026 | $ 6,792 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Intangible Assets Net Excluding Goodwill [Abstract] | ||||
Amortization expense recognized | $ 0.3 | $ 0.3 | $ 0.8 | $ 0.9 |
Amortization expense for remainder of 2022 | 0.3 | 0.3 | ||
Amortization expense for 2023 | 0.9 | 0.9 | ||
Amortization expense for 2024 | 0.8 | 0.8 | ||
Amortization expense for 2025 | 0.7 | 0.7 | ||
Amortization expense for 2026 | 0.6 | 0.6 | ||
Amortization expense, thereafter | $ 2.8 | $ 2.8 | ||
Intangible assets remaining amortization term | 13 years 3 months 18 days |
Assets Held for Sale - Addition
Assets Held for Sale - Additional Information (Detail) $ in Millions | 9 Months Ended |
Jun. 30, 2022 USD ($) | |
Impairment Charges [Member] | |
Long Lived Assets Held For Sale [Line Items] | |
Impairment losses | $ 39.5 |
Balance Sheet Information - Sum
Balance Sheet Information - Summary of Certain Significant Amounts Included in Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Expendable parts and supplies, net: | ||
Expendable parts and supplies | $ 31,437 | $ 29,297 |
Less: obsolescence and other | (5,096) | (4,830) |
Expendable parts and supplies, net | 26,341 | 24,467 |
Prepaid expenses and other current assets: | ||
Prepaid aviation insurance | 2,355 | 2,171 |
Lease incentives | 1,875 | 1,445 |
Other | 3,004 | 3,269 |
Prepaid expenses and other current assets | 7,234 | 6,885 |
Property and equipment, net: | ||
Property and equipment-gross | 1,544,157 | 1,621,437 |
Less: accumulated depreciation | (471,331) | (469,546) |
Property and equipment-net | 1,072,826 | 1,151,891 |
Other assets: | ||
Investments in equity securities | 16,586 | 25,149 |
Lease incentives | 13,085 | 10,957 |
Other | 15 | 15 |
Other assets | 29,686 | 36,121 |
Other accrued expenses: | ||
Accrued property taxes | 4,751 | 8,783 |
Accrued interest | 4,485 | 2,565 |
Accrued vacation | 5,109 | 5,936 |
Other | 17,977 | 16,373 |
Other accrued expenses | 32,322 | 33,657 |
Other noncurrent liabilities: | ||
Warrant liabilities | 25,225 | 21,964 |
Lease incentive obligations | 6,492 | 6,358 |
Other | 5,254 | 6,269 |
Other noncurrent liabilities | 36,971 | 34,591 |
Aircraft and Other Flight Equipment [Member] | ||
Property and equipment, net: | ||
Property and equipment-gross | 1,533,992 | 1,611,544 |
Other Machinery and Equipment [Member] | ||
Property and equipment, net: | ||
Property and equipment-gross | 5,399 | 4,934 |
Leasehold Improvements [Member] | ||
Property and equipment, net: | ||
Property and equipment-gross | 2,776 | 2,776 |
Vehicles [Member] | ||
Property and equipment, net: | ||
Property and equipment-gross | 993 | 1,184 |
Building [Member] | ||
Property and equipment, net: | ||
Property and equipment-gross | 699 | 699 |
Furniture and Fixtures [Member] | ||
Property and equipment, net: | ||
Property and equipment-gross | $ 298 | $ 300 |
Balance Sheet Information - Add
Balance Sheet Information - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 | Jul. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Condensed Balance Sheet Statements Captions [Line Items] | ||||||||
Depreciation expense | $ 19.3 | $ 20.6 | $ 59.9 | $ 61.2 | ||||
Estimated initial equity warrant asset value | $ 16.4 | |||||||
Estimated initial warrant asset value | $ 3.2 | |||||||
Net losses on investments in equity securities | 3.9 | 12.6 | ||||||
Aggregate carrying amount of investments in equity securities | 16 | 16 | ||||||
Investments without readily determinable fair value | $ 9.6 | $ 9.6 | ||||||
Heart Aerospace Incorporated [Member] | Forward Purchase Contract [Member] | Preferred Stock [Member] | ||||||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||||||
Purchase of preferred stock | $ 5 | |||||||
Initial investment in preferred stock measured at cost | $ 5 | |||||||
Class A [Member] | Archer Aviation, Inc. [Member] | ||||||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||||||
Stock issued during period, Shares | 500,000 | |||||||
Stock issued during period, Value | $ 5 | |||||||
Total grant date value, Additional warrant to purchase shares | $ 5.6 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Estimated Fair Value of Long-term Debt, Including Current Maturities (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Fair Value Disclosures [Abstract] | ||
Long-term debt and finance leases, including current maturities, carrying value | $ 653,396 | $ 670,335 |
Long-term debt and finance leases, including current maturities, fair value | $ 585,900 | $ 676,800 |
Long-Term Debt, Finance Lease_3
Long-Term Debt, Finance Leases, and Other Borrowings - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | $ 653,396 | $ 670,335 |
Less unamortized debt issuance costs | (9,522) | (9,295) |
Less notes payable warrants | (7,867) | (9,630) |
Net long-term debt, including current maturities | 636,007 | 651,410 |
Less current portion, net of unamortized debt issuance costs | (112,776) | (111,710) |
Net long-term debt | 523,231 | 539,700 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 15,630 | 22,930 |
Senior and Subordinated Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 77,058 | 86,551 |
Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 141,690 | 152,100 |
Senior and Subordinated Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 110,892 | 122,762 |
Other Obligations Due to Financial Institutions, Collateralized by the Underlying Equipment, Due 2023 and 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 18,481 | 4,581 |
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 31,557 | 45,559 |
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 17,500 | 30,625 |
Notes Payable to Financial Institution Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 2,500 | 4,000 |
Notes Payable to U.S Treasury Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 204,947 | $ 201,227 |
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | $ 33,141 |
Long-Term Debt, Finance Lease_4
Long-Term Debt, Finance Leases, and Other Borrowings - Schedule of Long-term Debt (Parenthetical) (Detail) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Sep. 25, 2019 USD ($) | Jul. 31, 2022 Air-craft | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2019 USD ($) | Jun. 30, 2019 USD ($) Airfleet | Jan. 31, 2019 USD ($) | Feb. 28, 2018 Engine | Jun. 30, 2022 USD ($) | Sep. 30, 2021 | Sep. 30, 2016 USD ($) Air-craft | Sep. 30, 2015 USD ($) Air-craft | Nov. 14, 2020 USD ($) | Nov. 13, 2020 USD ($) | Oct. 31, 2020 USD ($) | Oct. 30, 2020 USD ($) | |
Senior and Subordinated Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2027 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument maturity year | 2027 | 2027 | ||||||||||||||
Senior and Subordinated Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2027 [Member] | CRJ-900 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Number of aircraft financed | Air-craft | 7 | |||||||||||||||
Debt instrument, face amount | $ 170,200,000 | |||||||||||||||
Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2028 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument maturity year | 2028 | 2028 | ||||||||||||||
Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2028 [Member] | Ten E-175 Aircraft [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Number of aircraft financed | Air-craft | 10 | |||||||||||||||
Debt instrument, face amount | $ 246,000,000 | |||||||||||||||
Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2028 [Member] | Ten E-175 Aircraft [Member] | Minimum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt interest rate percentage | 4.75% | 4.75% | ||||||||||||||
Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2028 [Member] | Ten E-175 Aircraft [Member] | Maximum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt interest rate percentage | 6.25% | 6.25% | ||||||||||||||
Senior and Subordinated Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2028 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument maturity year | 2028 | 2028 | ||||||||||||||
Senior and Subordinated Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2028 [Member] | Eight E-175 Aircraft [Member] | Minimum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 195,300,000 | |||||||||||||||
Number of aircraft refinanced | Air-craft | 8 | |||||||||||||||
Other Obligations Due to Financial Institutions, Collateralized by the Underlying Equipment, Due 2024 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument maturity year | 2024 | 2024 | ||||||||||||||
Other Obligations Due to Financial Institutions, Collateralized by the Underlying Equipment, Due 2023 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument maturity year | 2023 | 2023 | ||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2024 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument maturity year | 2024 | 2024 | ||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2024 [Member] | Flight Equipment [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 91,200,000 | |||||||||||||||
Long term debt interest rate description | monthly LIBOR plus 3.10% | |||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2024 [Member] | LIBOR [Member] | Flight Equipment [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt, basis spread on variable rate | 3.10% | |||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2023 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument maturity year | 2023 | 2023 | ||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2023 [Member] | CRJ-700 Aircraft [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Number of aircraft financed | Airfleet | 10 | |||||||||||||||
Debt instrument, face amount | $ 70,000,000 | |||||||||||||||
Long term debt interest rate description | monthly LIBOR plus 5.00% | |||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2023 [Member] | CRJ-700 Aircraft [Member] | LIBOR [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt, basis spread on variable rate | 5% | |||||||||||||||
Notes Payable to Financial Institution Due 2023 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument maturity year | 2023 | 2023 | ||||||||||||||
Notes Payable to Financial Institution Due 2023 [Member] | Flight Equipment [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 8,000,000 | |||||||||||||||
Long term debt interest rate description | monthly LIBOR plus 5.00% | |||||||||||||||
Notes Payable to Financial Institution Due 2023 [Member] | LIBOR [Member] | Flight Equipment [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt, basis spread on variable rate | 5% | |||||||||||||||
Notes Payable to U.S Treasury Due 2025 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument maturity year | 2025 | 2025 | ||||||||||||||
Notes Payable to U.S Treasury Due 2025 [Member] | Loan Agreement [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt interest rate description | three-month LIBOR plus 3.50% | |||||||||||||||
Long term debt, basis spread on variable rate | 3.50% | |||||||||||||||
Secured term loan facility, maximum borrowing capacity | $ 200,000,000 | |||||||||||||||
Secured term loan facility, amount borrowed | $ 43,000,000 | |||||||||||||||
Secured term loan facility, additional amount borrowed | $ 0 | $ 152,000,000 | ||||||||||||||
Debt instrument, maturity date | Oct. 30, 2025 | |||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2027 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument maturity year | 2027 | 2027 | ||||||||||||||
Debt instrument, face amount | $ 35,300,000 | $ 35,300,000 | $ 35,300,000 | |||||||||||||
Long term debt interest rate description | monthly LIBOR plus 4.25% | |||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2027 [Member] | LIBOR [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt, basis spread on variable rate | 4.25% | 4.25% | ||||||||||||||
Senior Notes Due Two Thousand Twenty Seven [Member] | CRJ-900 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 154,700,000 | |||||||||||||||
Long term debt interest rate description | monthly LIBOR plus 2.71% | |||||||||||||||
Senior Notes Due Two Thousand Twenty Seven [Member] | CRJ-900 [Member] | LIBOR [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt, basis spread on variable rate | 2.71% | |||||||||||||||
Subordinated Notes Due Two Thousand Twenty Seven [Member] | CRJ-900 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Imputed interest | 6.25% | |||||||||||||||
Debt discount | $ 8,100,000 | |||||||||||||||
Senior Notes Due 2008 [Member] | Eight E-175 Aircraft [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt interest rate description | three-month LIBOR plus a spread ranging from 2.20% to 2.32% | |||||||||||||||
Senior Notes Due 2008 [Member] | Eight E-175 Aircraft [Member] | Minimum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 172,000,000 | |||||||||||||||
Senior Notes Due 2008 [Member] | Eight E-175 Aircraft [Member] | LIBOR [Member] | Minimum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt, basis spread on variable rate | 2.20% | |||||||||||||||
Senior Notes Due 2008 [Member] | Eight E-175 Aircraft [Member] | LIBOR [Member] | Maximum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt, basis spread on variable rate | 2.32% | |||||||||||||||
Subordinated Notes Due 2008 [Member] | Eight E-175 Aircraft [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt interest rate percentage | 4.50% | 4.50% | ||||||||||||||
Other Obligations Due to Financial Institutions, Collateralized by the Underlying Equipment, Due 2023 and 2024 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Imputed interest | 9.13% | |||||||||||||||
Number of spare engines leased | Engine | 2 | |||||||||||||||
Other Obligations Due to Financial Institutions, Collateralized by the Underlying Equipment, Due 2023 and 2024 [Member] | Subsequent Event [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Number of aircraft leased | Air-craft | 2 | |||||||||||||||
Working Capital Draw Loan [Member] | Revolving Credit Facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 35,000,000 | $ 35,000,000 | ||||||||||||||
Long term debt interest rate description | one-month LIBOR plus 3.75% | |||||||||||||||
Term loan, term | 3 years | 3 years | ||||||||||||||
Debt instrument, expiration year and month | 2022-09 | 2022-12 | ||||||||||||||
Working Capital Draw Loan [Member] | LIBOR [Member] | Revolving Credit Facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt, basis spread on variable rate | 3.75% | 3.75% |
Long-Term Debt, Finance Lease_5
Long-Term Debt, Finance Leases, and Other Borrowings - Schedule of Principal Maturities of Long-term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Long Term Debt By Maturity [Abstract] | ||
2022 (remainder of) | $ 29,822 | |
2023 | 111,432 | |
2024 | 72,400 | |
2025 | 63,751 | |
2026 | 271,065 | |
Thereafter | 104,926 | |
Long-term debt | $ 653,396 | $ 670,335 |
Long-Term Debt, Finance Lease_6
Long-Term Debt, Finance Leases, and Other Borrowings - Additional Information (Detail) | 1 Months Ended | 9 Months Ended | |||||||
Oct. 30, 2020 USD ($) $ / shares shares | Sep. 25, 2019 USD ($) | Apr. 30, 2022 | Dec. 31, 2021 USD ($) | Sep. 30, 2019 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | Apr. 09, 2020 $ / shares | |
Debt Instrument [Line Items] | |||||||||
Property and equipment-gross | $ 1,544,157,000 | $ 1,621,437,000 | |||||||
Long-Term Debt | $ 636,007,000 | $ 651,410,000 | |||||||
Warrants of common stock exercise price | $ / shares | $ 3.98 | ||||||||
Treasury Loan [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Calculated collateral coverage ratio | 1.6 | ||||||||
Minimum collateral coverage ratio covenant | 1.5 | ||||||||
Treasury Loan [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Additional collateral coverage ratio | 1.6 | ||||||||
Loan Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrants to purchase shares of common stock | shares | 4,899,497 | ||||||||
Warrants of common stock exercise price | $ / shares | $ 3.98 | ||||||||
Spare Engine Facility [Member] | Loan Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 35,300,000 | ||||||||
Long term debt interest rate description | LIBOR plus 4.25% | ||||||||
Secured term loan facility, maximum borrowing capacity | $ 54,000,000 | ||||||||
Debt instrument, maturity date | Dec. 31, 2027 | ||||||||
Spare Engine Facility [Member] | LIBOR [Member] | Loan Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long term debt, basis spread on variable rate | 4.25% | ||||||||
Equipment Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-Term Debt | $ 141,700,000 | ||||||||
Working Capital Draw Loan [Member] | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 35,000,000 | $ 35,000,000 | |||||||
Term loan, term | 3 years | 3 years | |||||||
Debt instrument, expiration year and month | 2022-09 | 2022-12 | |||||||
Long term debt interest rate description | one-month LIBOR plus 3.75% | ||||||||
Outstanding working capital draw loan | $ 15,600,000 | ||||||||
Working Capital Draw Loan [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long term debt, basis spread on variable rate | 3.75% | 3.75% | |||||||
Secured Term Loan Facility [Member] | Loan Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Secured term loan facility, maximum borrowing capacity | $ 200,000,000 | ||||||||
Debt instrument, maturity date | Oct. 30, 2025 | ||||||||
Secured Term Loan Facility [Member] | Loan Agreement [Member] | Treasury Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long term debt, basis spread on variable rate | 3.50% | ||||||||
Secured term loan facility, amount borrowed | $ 195,000,000 | ||||||||
Secured term loan facility, additional amount borrowed | $ 0 | ||||||||
Debt instrument, maturity date | Oct. 30, 2025 | ||||||||
Aircraft and Equipment [Member] | Pledged as Collateral [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Property and equipment-gross | $ 1,014,200,000 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculations of Net Income (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share And Equity [Abstract] | ||||||||
Net income (loss) | $ (9,985) | $ (42,783) | $ (14,274) | $ 4,276 | $ 5,689 | $ 14,118 | $ (67,042) | $ 24,083 |
Basic weighted average common shares outstanding | 36,183 | 35,769 | 36,064 | 35,642 | ||||
Add: Incremental shares for: | ||||||||
Dilutive effect of warrants | 3,084 | 2,536 | ||||||
Dilutive effect of restricted stock | 660 | 633 | ||||||
Diluted weighted average common shares outstanding | 36,183 | 39,513 | 36,064 | 38,811 | ||||
Net income (loss) per share attributable to common shareholders | ||||||||
Basic | $ (0.28) | $ 0.12 | $ (1.86) | $ 0.68 | ||||
Diluted | $ (0.28) | $ 0.11 | $ (1.86) | $ 0.62 |
Earnings Per Share - Number of
Earnings Per Share - Number of Weighted-Average Potentially Dilutive Shares Excluded from Calculation of Diluted Net Income (Loss) Per Share (Detail) | 9 Months Ended |
Jun. 30, 2022 shares | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Anti-dilutive securities excluded from calculation of diluted net income (loss) per share | 1,153 |
Number of Warrants [Member] | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Anti-dilutive securities excluded from calculation of diluted net income (loss) per share | 1,011 |
Restricted Stock [Member] | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Anti-dilutive securities excluded from calculation of diluted net income (loss) per share | 142 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - $ / shares | Jun. 30, 2022 | Sep. 30, 2021 | Apr. 09, 2020 |
Stockholders Equity Note [Abstract] | |||
Warrants of common stock exercise price | $ 3.98 | ||
Common stock, warrants issued | 4,899,497 | 4,899,497 | |
Common stock, warrants outstanding | 4,899,497 | 4,899,497 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | |
Income Taxes [Line Items] | |||||
Effective tax rate (ETR) from continuing operations | 19.90% | 26.30% | 22.10% | 25.50% | |
State net operating loss carryforwards | $ 1.2 | ||||
Domestic Tax Authority [Member] | 2027-2038 [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 541.3 | ||||
State and Local Jurisdiction [Member] | 2022-2041 [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | $ 235.7 | ||||
Minimum [Member] | Domestic Tax Authority [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards, expiration year | 2027 | ||||
Minimum [Member] | State and Local Jurisdiction [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards, expiration year | 2022 | ||||
Maximum [Member] | Domestic Tax Authority [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards, expiration year | 2038 | ||||
Maximum [Member] | State and Local Jurisdiction [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards, expiration year | 2041 |
Share-Based Compensation and _3
Share-Based Compensation and Stock Repurchases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost related to unvested share-based compensation arrangements | $ 3,800 | $ 3,800 | ||||||
Unrecognized compensation cost, period for recognition | 1 year 7 months 6 days | |||||||
Share-based compensation expense | 700 | $ 700 | $ 2,100 | $ 2,400 | ||||
Repurchased shares, value | $ 339 | $ 60 | $ 15 | $ 1,209 | $ 157 | $ 19 | ||
Common Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Repurchased shares, shares | 132,151 | |||||||
Repurchased shares, value | $ 400 | |||||||
Board of Directors [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares vesting period | 1 year | |||||||
Restricted Stock Units [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares vesting period | 3 years | |||||||
Restricted Stock Units [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares vesting period | 5 years |
Share-Based Compensation and _4
Share-Based Compensation and Stock Repurchases - Schedule of Restricted Share Activity (Detail) - Restricted Stock [Member] | 9 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Unvested, Beginning Balance | shares | 1,006,206 |
Number of Shares, Granted | shares | 664,414 |
Number of Shares, Vested | shares | (412,226) |
Number of Shares, Forfeited | shares | (28,695) |
Number of Shares, Unvested, Ending Balance | shares | 1,229,699 |
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ / shares | $ 6.22 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 3.46 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 6.28 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 10.08 |
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ / shares | $ 4.62 |
Employee Stock Purchase Plan -
Employee Stock Purchase Plan - Additional Information (Detail) - 2019 ESPP [Member] - shares | 9 Months Ended | 39 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Ordinary shares, discount rate | 10% | |
Number of ordinary shares issued | 53,567 | 247,761 |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Eligible employees contribution from their eligible compensation during each semi annual | 1% | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Eligible employees contribution from their eligible compensation during each semi annual | 15% | |
Number of ordinary shares issued | 500,000 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 USD ($) Air-craft | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) Air-craft | Jun. 30, 2021 USD ($) | |
Leases [Abstract] | ||||
Number of leased aircraft | Air-craft | 20 | 20 | ||
Aggregate rental expense under all operating aircraft, equipment and facility leases | $ 10.8 | $ 11.3 | $ 33.1 | $ 34 |
Weighted average remaining lease term Operating leases | 3 years 9 months 18 days | 3 years 9 months 18 days | ||
Weighted average discount rate Operating leases | 4.50% | 4.50% | ||
Impairment of certain operating lease ROU assets | $ 0.2 |
Leases - Components of Operatin
Leases - Components of Operating Lease Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Operating lease costs | $ 9,534 | $ 9,194 | $ 28,678 | $ 28,599 |
Variable and short-term lease costs | 1,311 | 2,099 | 4,392 | 5,434 |
Total lease costs | $ 10,845 | $ 11,293 | $ 33,070 | $ 34,033 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2022 Engine | Jun. 30, 2022 USD ($) Engine Lawsuit | Mar. 02, 2022 USD ($) | Jul. 31, 2021 USD ($) | Feb. 28, 2021 USD ($) | |
IPO [Member] | |||||
Purchase Commitment Excluding Longterm Commitment [Line Items] | |||||
Number of putative class action lawsuits | Lawsuit | 2 | ||||
Agreement in principle to settle all claims | $ | $ 5,000,000 | ||||
Superior Court of State of Arizona [Member] | IPO [Member] | |||||
Purchase Commitment Excluding Longterm Commitment [Line Items] | |||||
Number of putative class action lawsuits | Lawsuit | 1 | ||||
U.S. District Court of Arizona [Member] | IPO [Member] | |||||
Purchase Commitment Excluding Longterm Commitment [Line Items] | |||||
Number of putative class action lawsuits | Lawsuit | 1 | ||||
Forward Purchase Contract [Member] | Heart Aerospace Incorporated [Member] | Maximum [Member] | |||||
Purchase Commitment Excluding Longterm Commitment [Line Items] | |||||
Purchase commitment amount | $ | $ 1,200,000,000 | ||||
CF34-8C5 or CF34-8E5 Engines [Member] | Letter Agreement No. 13-3 [Member] | |||||
Purchase Commitment Excluding Longterm Commitment [Line Items] | |||||
Number of new spare engines to be acquired | Engine | 10 | ||||
New spare engines delivery month and year description | We agreed to purchase and take delivery of ten (10) new CF34-8C5 or CF34-8E5 engines with delivery dates starting from July 1, 2021 through November 1, 2022. The total purchase commitment related to these ten (10) engines is approximately $52.2 million. | ||||
Purchase commitment amount | $ | $ 52,200,000 | ||||
Number of additional spare engines to be acquired beyond 2022 | Engine | 10 | ||||
Number of new spare engines purchased | Engine | 7 | ||||
CF34-8C5 or CF34-8E5 Engines [Member] | Forecast [Member] | Letter Agreement No. 13-3 [Member] | |||||
Purchase Commitment Excluding Longterm Commitment [Line Items] | |||||
Number of new spare engines to be delivered | Engine | 3 | ||||
eVTOL Aircraft [Member] | Forward Purchase Contract [Member] | Archer Aviation, Inc. [Member] | |||||
Purchase Commitment Excluding Longterm Commitment [Line Items] | |||||
Purchase commitment amount | $ | $ 200,000,000 |