MESA - Mesa Air is cut at Deutsche Bank with headwinds expected to extend into first half of 2022

Deutsche Bank lowers its rating on Mesa Air Group (NASDAQ:MESA) to Hold from Buy. Analyst Michael Linenberg and team note the airline company faces higher than average cost pressures over the next two quarters with training/staffing costs due to increased turnover and elevated maintenance expenses. "As a result, we now expect Mesa to post quarterly losses for the next two quarters of FY 2022 (i.e., Dec Q 2021 and Mar Q 2022 as Mesa has a Sep Q year end). Following Sep Q’s disappointing results (adjusted net loss per share of $0.06 which compared unfavorably to our EPS estimate of $0.10 and consensus EPS of $0.12), we are lowering our full year 2022 EPS from $1.00 to $0.20." The high level of labor attrition is expected to extend beyond the first half of FY22, which prompts the firm to revisit its longer-term earnings outlook to incorporate that headwind. Deutsche Bank

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Mesa Air is cut at Deutsche Bank with headwinds expected to extend into first half of 2022