The Wall Street Journal-20080115-Earnings Digest -- Airlines- Mesa Air Group Inc-
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Earnings Digest -- Airlines: Mesa Air Group Inc.
Mesa Air Group Inc. swung to a fiscal fourth-quarter net loss under the weight of surging fuel prices and a $57.7 million charge related to a judgment against it in its litigation with Hawaiian Airlines. Revenue fell 6% in the quarter ended Sept. 30, mainly due to a decrease in aircraft in service. The Phoenix-based regional airline, which operates mostly commuter aircraft on behalf of major carriers, also announced it will shut down its Air Midwest operation, ditching plans to sell the business. On Oct. 30, a federal judge ordered Mesa to pay $80 million in damages to Hawaiian Holdings Inc.'s Hawaiian Airlines after ruling that Mesa's entry into the market in Hawaii with a low-fare airline in 2006 was based in part on misuse of confidential information that Mesa obtained when it was considering an investment in Hawaiian. The judgment is under appeal. Mesa late last month delayed the release of the quarter's results for the second time, citing a continuing review of its estimates and reserves, and additional work to ensure proper reporting of discontinued operations.
