0001628280-26-029330
SEC filingTransformative quarter driven by the Mesa merger, with revenue surging 411% to $527.4M and swinging to a $26.9M net profit from a $114.6M loss a year ago, though heavy capex kept free cash flow negative.
Net cash provided by operating activities was $57.8 million, a significant improvement from negative $11.6 million in the prior year, driven by higher earnings and changes in working capital. Capital expenditures totaled $93.1 million, primarily for aircraft acquisitions and pre-delivery deposits, resulting in negative free cash flow of $35.3 million. The company funds its capital needs through cash on hand, operating cash flow, and external borrowings secured by aircraft.
The company's liquidity is supported by cash and liquid investments, though the merger and fleet expansion have increased capital commitments. Management notes that termination of capacity purchase agreements could materially affect financial position and cash flows. Goodwill from the merger is not expected to be deductible for tax purposes. Committed future borrowings are expected to be secured by related aircraft and funded upon delivery.