PHOENIX - Mesa Air Group, Inc. (NASDAQ: NASDAQ:MESA), a regional airline carrier, has been notified by the Nasdaq Stock Market of non-compliance with listing rules due to a delay in filing its quarterly financial report. The company missed the deadline to submit its Form 10-Q for the quarter ending March 31, 2024, following a previous delay for the December 31, 2023, report.
The notice, received on May 16, 2024, does not currently affect the listing or trading of Mesa Air's securities on the Nasdaq Capital Market. Still, to regain compliance, Mesa must file the overdue Form 10-Qs by August 12, 2024. The company has stated that the filing delays are not due to any anticipated restatements of financial statements or disagreements with auditors.
Mesa Air operates as United Express under a capacity purchase agreement with United Airlines. As of March 31, 2024, the company served 79 cities across the U.S., Canada, Cuba, and Mexico, with a fleet of 80 aircraft and approximately 263 daily departures. The company employs around 2,110 people.
The airline is working diligently to complete and file both outstanding quarterly reports before the August deadline. This announcement is in line with Nasdaq's requirement for prompt disclosure of a deficiency notification.
The press release also includes forward-looking statements, cautioning that actual events could differ materially due to various risks and uncertainties. These include Mesa's ability to address Nasdaq's inquiries satisfactorily, becoming current with SEC reporting, and the risk of further delays in filing the Form 10-Qs.
Investors and stakeholders are advised that the information in this article is based on a press release statement from Mesa Air Group, Inc.
InvestingPro Insights
As Mesa Air Group, Inc. (NASDAQ: MESA) navigates through its current challenges with Nasdaq listing compliance, the company's financial metrics and market performance provide a deeper understanding of its position.
According to real-time data from InvestingPro, Mesa Air's market capitalization stands at a modest $35.62 million, reflecting the scale of the regional airline in the broader market. The company's financial health is a concern, with a negative Price/Earnings (P/E) ratio of -0.42, indicating that investors are wary of current earnings or are expecting losses.
The Price/Book ratio, a measure of market valuation, is quite low at 0.18, suggesting that the stock may be undervalued relative to the company's book value. This could be an interesting point for value investors, especially considering that Mesa Air's net income is expected to grow this year, one of the InvestingPro Tips that could signal a potential turnaround for the company.
Yet, investors should be cautious, as the company is also trading at a high EBITDA valuation multiple and has been flagged for a significant debt burden, which may make it difficult to meet interest payments.
With the stock price experiencing significant volatility, these factors should be weighed carefully. For those considering a deeper investment analysis, InvestingPro offers additional insights, including 12 more InvestingPro Tips for Mesa Air Group, which can be accessed at https://www.investing.com/pro/MESA. For those interested in a subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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