0001564590-22-039954 | 10-K | XBRL Viewer

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Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
Document and Entity Information - USD ($) $ in Thousands	Sep. 30, 2022	Mar. 31, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Trading Symbol	MESA
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 Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
ICFR Auditor Attestation Flag	false
Entity Public Float		$ 158,957,586
Entity Common Stock, Shares Outstanding	36,376,897
Entity File Number	001-38626
Entity Incorporation, State or Country Code	NV
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, State or Province	AZ
Entity Address, Postal Zip Code	85008
City Area Code	602
Local Phone Number	685-4000
Document Annual Report	true
Document Transition Report	false
Title of 12(b) Security	Common Stock, no par value
Security Exchange Name	NASDAQ
Auditor Name	Ernst & Young LLP
Auditor Firm ID	42
Auditor Location	Phoenix, Arizona
Documents Incorporated by Reference	Portions of the Registrant's definitive proxy statement relating to its 2023 annual meeting of shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The Registrant’s definitive proxy statement for its 2023 annual meeting of shareholders will be filed with the Securities and Exchange Commission within 120 days after the end of the Registrant’s fiscal year to which this report relates

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Current assets:
Cash and cash equivalents	$ 57,683	$ 120,517
Restricted cash	3,342	3,350
Receivables, net	3,978	3,167
Expendable parts and supplies, net	26,715	24,467
Prepaid expenses and other current assets	6,616	6,885
Total current assets	98,334	158,386
Property and equipment, net	865,254	1,151,891
Intangible assets, net	3,842	6,792
Lease and equipment deposits	6,085	6,808
Operating lease right-of-use assets	43,090	93,100
Deferred heavy maintenance, net	9,707	3,499
Assets held for sale	73,000
Other assets	16,290	36,121
Total assets	1,115,602	1,456,597
Current liabilities:
Current portion of long-term debt and finance leases	97,218	111,710
Current portion of deferred revenue	385	6,298
Current maturities of operating leases	17,233	32,652
Accounts payable	59,386	61,476
Accrued compensation	11,255	12,399
Other accrued expenses	29,000	33,657
Total current liabilities	214,477	258,192
Long-term debt and finance leases, excluding current portion	502,517	539,700
Noncurrent operating lease liabilities	16,732	33,991
Deferred credits	3,082	3,934
Deferred income taxes	17,719	69,940
Deferred revenue, net of current portion	23,682	28,202
Other noncurrent liabilities	29,219	34,591
Total noncurrent liabilities	592,951	710,358
Total liabilities	807,428	968,550
Commitments and contingencies (Note 17)
Stockholders' equity:
Common stock of no par value and additional paid-in capital, 125,000,000 shares authorized; 36,376,897 (2022) and 35,958,759 (2021) shares issued and outstanding, and 4,899,497 (2022) and 4,899,497 (2021) warrants issued and outstanding	259,177	256,372
Retained earnings	48,997	231,675
Total stockholders' equity	308,174	488,047
Total liabilities and stockholders' equity	$ 1,115,602	$ 1,456,597

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Sep. 30, 2021
Statement Of Financial Position [Abstract]
Common stock, no par value	$ 0	$ 0
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	36,376,897	35,958,759
Common stock, shares outstanding	36,376,897	35,958,759
Common stock, warrants issued	4,899,497	4,899,497
Common stock, warrants outstanding	4,899,497	4,899,497

Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Operating revenues:
Contract revenue	$ 531,001	$ 503,591	$ 545,070
Operating expenses:
Flight operations	177,038	162,137	169,242
Maintenance	201,930	217,646	192,123
Aircraft rent	36,989	39,345	48,802
General and administrative	43,966	49,855	52,246
Depreciation and amortization	81,508	82,847	82,296
Lease termination	233	4,508
Asset impairment	171,824
Other operating expenses	7,238	3,536	4,028
Government grant recognition		(119,479)	(83,834)
Total operating expenses	720,726	440,395	464,903
Operating (loss) income	(189,725)	63,196	80,167
Other income (expense), net:
Interest expense	(35,289)	(34,730)	(44,120)
Interest income	139	365	105
Gain on sale aircraft	4,723
Loss on investments, net	(13,715)	(6,816)
Other (expense) income, net	(801)	401	843
Total other expense, net	(44,943)	(40,780)	(43,172)
(Loss) income before taxes	(234,668)	22,416	36,995
Income tax (benefit) provision	(51,990)	5,828	9,531
Net (loss) income and comprehensive (loss) income	$ (182,678)	$ 16,588	$ 27,464
Net (loss) income per share
Basic	$ (5.06)	$ 0.46	$ 0.78
Diluted	$ (5.06)	$ 0.43	$ 0.78
Weighted-average common shares outstanding
Basic	36,133	35,713	35,237
Diluted	36,133	38,843	35,308
Contract Revenue
Operating revenues:
Contract revenue	$ 478,482	$ 434,518	$ 506,590
Pass Through And Other Revenue
Operating revenues:
Contract revenue	$ 52,519	$ 69,073	$ 38,480

Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Revision of Prior Period Accounting Standards Update Adjustment [Member]	Common Stock [Member]	Number of Warrants [Member]	Common Stock and Additional Paid-In Capital [Member]	Retained Earnings [Member]	Retained Earnings [Member] Revision of Prior Period Accounting Standards Update Adjustment [Member]
Beginning balance at Sep. 30, 2019	$ 425,868				$ 238,504	$ 187,364
Beginning balance (ASU 2018-09 [Member]) at Sep. 30, 2019		$ 259					$ 259
Beginning balance, shares at Sep. 30, 2019			31,413,287	3,600,953
Stock compensation expense	4,414				4,414
Repurchased shares	(586)		$ (600)		(586)
Repurchased shares, shares			(142,439)
Warrants converted to common stock			3,600,953	(3,600,953)
Restricted shares issued, shares			555,473
Employee share purchases	440				440
Employee share purchases, shares			99,644
Net income (loss)	27,464					27,464
Ending balance at Sep. 30, 2020	457,859				242,772	215,087
Ending balance, shares at Sep. 30, 2020			35,526,918
Stock compensation expense	3,126				3,126
Repurchased shares	(1,486)		$ (1,500)		(1,486)
Repurchased shares, shares			(155,174)
Issuance of warrants, net of issuance costs	11,489				11,489
Issuance of warrants, net of issuance costs, shares				4,899,497
Restricted shares issued, shares			492,465
Employee share purchases	471				471
Employee share purchases, shares			94,550
Net income (loss)	16,588					16,588
Ending balance at Sep. 30, 2021	488,047				256,372	231,675
Ending balance, shares at Sep. 30, 2021			35,958,759	4,899,497
Stock compensation expense	2,761				2,761
Repurchased shares	(455)		$ (500)		(455)
Repurchased shares, shares			(147,108)
Restricted shares issued	100				100
Restricted shares issued, shares			455,303
Employee share purchases	399				399
Employee share purchases, shares			109,943
Net income (loss)	(182,678)					(182,678)
Ending balance at Sep. 30, 2022	$ 308,174				$ 259,177	$ 48,997
Ending balance, shares at Sep. 30, 2022			36,376,897	4,899,497

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net (loss) income	$ (182,678)	$ 16,588	$ 27,464
Adjustments to reconcile net (loss) income to net cash flows provided by operating activities:
Depreciation and amortization	81,508	82,847	82,296
Stock compensation expense	2,761	3,126	4,414
Loss on investments, net	13,715	6,816
Deferred income taxes	(52,221)	5,665	9,234
Asset impairment	171,824
Amortization of deferred credits	(852)	(2,357)	(3,742)
Amortization of debt discount and issuance costs and accretion of interest into long-term debt	9,681	11,379	4,202
Loss (gain) on extinguishment of debt	397	(950)
Loss (gain) on disposal of assets	(4,723)	78	401
Provision for obsolete expendable parts and supplies	634	380
Lease termination	233	4,508
Changes in assets and liabilities:
Receivables	(811)	10,545	9,368
Expendable parts and supplies	(2,882)	(1,865)	(1,529)
Prepaid expenses and other operating assets and liabilities	(679)	(56)	(1,368)
Accounts payable	(2,772)	7,861	3,418
Deferred heavy maintenance, net	(8,066)	(3,857)
Deferred revenue	(10,432)	10,742	23,758
Accrued expenses and other liabilities	(3,175)	(8,911)	20,801
Change in operating lease right-of-use assets and liabilities	1,900	(9,668)	(4,055)
Net cash provided by operating activities	13,362	132,871	174,662
Cash flows from investing activities:
Capital expenditures	(40,814)	(17,149)	(26,667)
Proceeds from sale of flight equipment and expendable inventory	50,000
Investments in equity securities	(200)	(10,000)
Net payments on equipment & other deposits	(7,621)	(6,322)
Net cash provided by (used in) investing activities	1,365	(33,471)	(26,667)
Cash flows from financing activities:
Proceeds from long-term debt	39,811	195,000	23,000
Principal payments on long-term debt and finance leases	(114,910)	(271,033)	(138,289)
Payments of debt and warrant issuance costs	(2,414)	(1,326)	(1,780)
Proceeds from issuance of common stock under ESPP	399	471
Repurchase of stock	(455)	(1,486)	(586)
Net cash used in financing activities	(77,569)	(78,374)	(117,655)
Net change in cash, cash equivalents and restricted cash	(62,842)	21,026	30,340
Cash, cash equivalents and restricted cash at beginning of period	123,867	102,841	72,501
Cash, cash equivalents and restricted cash at end of period	61,025	123,867	102,841
Supplemental cash flow information
Cash paid for interest	24,895	32,767	41,501
Cash paid for income taxes, net	487	404	398
Operating lease payments in operating cash flows	36,262	47,612	44,173
Supplemental disclosure of non-cash operating activities
Right-of-use assets obtained in exchange for lease liabilities	6,286	4,309	145,054
Supplemental disclosure of non-cash financing activities
Accrued capital expenditures	1,121	439	$ 61
Acquisition of finance leases	15,122
Investments in warrants to purchase common stock	$ 3,260	21,964
Debt issuance cost related to loan agreement with U.S. Department of the Treasury		$ (1,887)

Organization and Operations

12 Months Ended

Sep. 30, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Operations

1.	Organization and Operations

The Company

Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. ("Mesa" or the "Company") is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 107 cities in 39 states, the District of Columbia, the Bahamas, and Mexico as well as cargo services out of Cincinnati/Northern Kentucky International Airport. As of September 30, 2022, Mesa operated a fleet of 158 aircraft with approximately 306 daily departures and 2,454 employees. Mesa’s fleet were operated conducted 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. Mesa operates all of its flights as either American Eagle, United Express, or DHL Express flights pursuant to the terms of CPAs entered into with American Airlines, Inc. (“American”) and United Airlines, Inc. (“United”) and FSA with DHL Network Operations (USA), Inc. (“DHL”) (each, our “major partner”). All of the Company’s consolidated contract revenues for the fiscal years ended September 30, 2022, 2021, and 2020 were derived from operations associated with these two (2) CPAs, FSA, and leases of aircraft to a third party.

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), and reimbursement of certain direct operating expenses in exchange for providing flight services. The major partners also pay certain expenses directly to suppliers, such as fuel, ground operations and landing fees. Under the terms of these CPAs, the major partners control route selection, pricing, and seat inventories, reducing our exposure to fluctuations in passenger traffic, fare levels, and fuel prices. Under our FSA with DHL, we receive a fee per block hour with a minimum block hour guarantee in exchange for providing cargo flight services. Ground support expenses including fueling and airport fees are paid directly by DHL.

Impact of Pilot Shortage and Attrition

Impact of Pilot Shortage

During our fiscal year ended September 30, 2022, the severity of the pilot shortage, elevated pilot attrition, and increasing costs associated with pilot wages adversely impacted our financial results, cash flows, financial position, and other key financial ratios. One of the primary factors contributing to the pilot shortage and attrition is the demand for pilots at major carriers, which are hiring at an accelerated rate. 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.

As a result of pilot shortage and attrition, we produced less block hours to generate revenues and incurred penalties for operational shortfalls under our CPAs. These challenges resulted in a negative impact on the Company’s financial results highlighted by operating cash flows of $13.4 million and net loss of $182.7 million including a non-cash impairment charge related to the Company’s American asset group of $171.8 million. These conditions and events raised financial concerns about our ability to continue to fund our operations and meet debt obligation in the next twelve months.

To address the events that gave rise to such concerns, management developed and implemented the following material changes to its business designed to ensure the Company could continue to fund its operations and meet its debt obligations over the next 12 months. In addition to successfully implementing these effective measures, the Company expects to develop and implement additional measures aimed at addressing periods beyond the next 12 months.

▪

In the fourth quarter, the Company reached an agreement with ALPA which increased overall pilot hourly pay by nearly 118% for captains and 172% for new-hire first officers. As a result of this agreement, we have experienced reduced attrition rates and attracted new pilots.

▪

The Company and American have agreed to terminate and complete a wind-down of the American CPA. This will ultimately eliminate financial penalties incurred under the American CPA. In December 2022, we entered into Amendment No.11 to our American CPA. See the disclosure under Note 18 - "Subsequent Events" in the notes to the audited consolidated financial statements included in this Annual Report on Form 10-K for a discussion of Amendment No. 11 which includes among other things, disclosure regarding the wind-down of our operations with American and the termination of the American CPA.

▪

In December 2022, we entered into the Third Amended and Restated Capacity Purchase Agreement with United which amended and restated the existing United CPA. This agreement increases block hour revenues to cover increased wages agreed to with ALPA and adds CRJ 900 aircraft currently operating under the American CPA. See the disclosure under Note 18 - "Subsequent Events" in the notes to the audited consolidated financial statement included in this Annual Report on Form 10-K for a discussion of the Amended and Restated United

CPA which includes among others, disclosure regarding the transition of the aircraft operated under the American CPA to be operated under the Third Amended and Restated United CPA.

▪

We entered into an agreement with United to sell 18 CRJ-700 aircraft during the reporting period, of which 10 were sold. The approximate net proceeds from the sale in the quarter was $ 36.8 million after retirement of debt. The remaining eight (8) are expected to close in early January 2022. The approximate net proceeds from the sale and after retirement of debt is $8 million.

▪

We entered into an agreement with a third party to sell eleven (11) of our CRJ-900 aircraft and one CRJ-200 aircraft to raise capital and retire debt. The approximate net proceeds from the sale are expected to be $8.2 million after retirement of debt.

▪

We entered into an agreement to sell 30 spare engines to United to raise capital and retire debt. The approximate gross proceeds from the sale are expected to be $80 million and will retire debt of $26.4 million.

▪

We established a new line of credit totaling $25.5 million to draw upon when needed. See the disclosure under Note 18 - "subsequent Events" in the notes to the audited consolidated financial statements included in this Annual Report on Form 10-K for a discussion of the line of credit and amount drawn upon subsequently.

▪

We entered into an agreement with Export Development Bank of Canada (EDC), reducing debt and interest payments on all seven aircraft for the period of January 2023 through December 2024, providing up to $14 million of liquidity. Additionally, the junior noteholder MHIRJ agreed to reduce its loan amount by approximately $5 million.

▪

We entered into an agreement with RASPRO Trust, reducing the buyout pricing on all 15 aircraft at lease termination by a total of $25 million.

▪

We established the Mesa Pilot Development Program (the "MPD Program") to increase the pilot supply to Mesa.. We have entered into an agreement to purchase up to 29 state-of-the-art Pipistrel Alpha Trainer 2 aircraft. This new fleet will be the backbone of our MPD Program to help commercial pilots accelerate their accumulation of flight hours to reach the minimum flight hours required by FAA and then be hired by Mesa. As part of the program, pilots will be provided with the opportunity to accumulate up to 1,500 flight hours required to fly a commercial aircraft at Mesa Airlines. Flights costs of $25 per hour, per pilot, will be fully financed by us with zero interest, providing no upfront out-of-pocket expense for flight time while the candidate is accruing the required hours to earn their ATP certificate.

▪

We added flight training simulators and flight training instructors to expand our training capacity to backfill pilots lost to attrition.

▪

We have expanded the United Aviate program participation to include all pilots flying for Mesa. 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 Airlines enhancing Mesa's ability to attract and retain pilots.

▪

We have delayed and/or deferred major spending on aircraft and engine maintenance to match the current and projected level of flight activity.

These plans and initiatives outlined above have effectively alleviated pressure on financial performance. While we continue implement and monitor our plans and initiatives, there is no guarantee that these will continue to be effective and achieve their desired objectives.

As of September 30, 2022, the Company has $97.2 million of short-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 we have achieved as outlined above.

American Capacity Purchase Agreement

As of September 30, 2022, the Company operated 42 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 American CPA is subject to termination prior to its expiration, subject to our right to cure, in various circumstances including:

▪

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 (3) 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) 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 (1) aircraft;

▪

If our CD0 falls below certain levels for a specified period of time, American may withdraw one (1) aircraft;

▪

If we fail to satisfactorily complete established cabin interior program requirements by certain deadlines, American may withdraw one (1) 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.

During fiscal year 2021, we entered into amendments to the American CPA. The amendments reflect the following:

▪

The addition of CRJ-900 aircraft to the American CPA (collectively, the “Incremental Aircraft”) in accordance with the following schedule: (i) three (3) aircraft, from January 5, 2021 to March 3, 2021, (ii) increasing to a total of five (5) aircraft, from March 4, 2021 to May 5, 2021, (iii) decreasing to a total of three (3) aircraft, from May 6, 2021 to June 2, 2021, and (iv) increasing to a total of five (5) aircraft, from June 3, 2021 to August 17, 2021.

▪

A temporary reduction in certain rates for the period December 2020 through September 2021.

▪

The waiver of the operational performance metrics for the month of August 2021, and extension of the deadline for completing certain cabin interior and refurbishment requirements as defined in the American CPA to December 31, 2021.

▪

Increases to incentive and penalty compensation under the American CPA, effective beginning in October 2021.

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 these 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.

Subsequently on July 28, 2022, we amended our American CPA, pursuant to Amendment No. 10 thereto, to, among other things, (a) modify 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 three (3)-month measurement periods for purposes of American’s termination rights under the CPA to commence August 2022, and (d) amend certain other amounts payable to us thereunder. 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.

For the months of August, September, and October 2022, we did not meet the CD0 minimum performance levels under the American CPA. As noted above, the failure to meet such performance levels for two (2) consecutive months under the terms of the American CPA gives American the right to remove one (1) additional aircraft from the CPA for not meeting the CD0 minimum performance levels for two (2) consecutive months. The Company’s failure to meet the 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. In December 2022, we entered into Amendment No.11 to our American CPA. See Note 18 – “Subsequent Events” for a discussion of Amendment No.11, which includes, among other things, disclosure regarding the wind down of our operations under the American CPA and the transition of such aircraft to the United CPA.

United Capacity Purchase Agreement

As of September 30, 2022, we operated 20 E-175LL and 60 E-175 aircraft under a Second Amended and Restated Capacity Purchase Agreement with United dated November 4, 2020 (as amended, the “United CPA”). Under our United CPA, United owns 42 of the 60 E-175 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.

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.

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. During August of 2022, we committed to a formal plan to sell 18 of our 20 CRJ-700 aircraft and subsequently terminated the leases on the 18 CRJ-700 aircraft. As of September 30, 2022, we sold 10 of the 18 CRJ-700 aircraft. See Note 7 – “Assets Held for Sale” for further discussion of the CRJ-700 aircraft classified as held for sale as of September 30, 2022.

Our United CPA is subject to termination rights prior to its expiration, including:

▪

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 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 select 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 10 year anniversary of the in-service date, certain accelerated margin payments.

See Note 18 – “Subsequent Events” for a discussion of the Amended and Restated United CPA, which includes among others, disclosure regarding the transition of the aircraft operated under the American CPA to be operated under the Amended and Restated United CPA.

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 as of September 30, 2022. 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. The third Boeing 737-400F aircraft is leased to us as an operating lease by a third party.

The 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 (1) or more aircraft for a period of one (1) year with 90 days’ advance written notice.

Our DHL FSA is subject to following termination rights prior to its expiration:

▪

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 day’s written notice.

▪

If we fail to comply with performance standards for three (3) 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 control or ownership of the Company; and

▪

DHL may terminate the agreement for a specific aircraft if it is subject to a total loss and the Company does 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.

For the months of July, August, and September 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 Accounting Policies

12 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.	Summary of Significant Accounting Policies

Basis of Presentation

The accompanying 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 United States generally accepted accounting principles 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.

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 our fiscal year following the fifth anniversary of the 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.

Use of Estimates

The preparation of the Company's 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 consolidated financial statements. Actual results could differ from those estimates.

Segment Reporting

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing operating performance. In consideration of ASC 280, "Segment Reporting," we are not organized around specific services or geographic regions. We currently operate in one service line providing scheduled flying services in accordance with our capacity purchase agreements and flight services agreement.

While we operate under two (2) 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. Additionally, our chief operating decision maker (“CODM”) uses consolidated financial information to evaluate our performance, which is the same basis on which he communicates our results and performance to our Board of Directors. Our CODM bases all significant decisions regarding the allocation of our resources on a consolidated basis. Based on the information described above and in accordance with the applicable literature, management has concluded that we are organized and operated as one operating and reportable segment.

All of our operating revenue in our 2022, 2021, and 2020 fiscal years was derived from operations associated with our American and United CPAs, DHL FSA, and from leases of aircraft to a third party. It is currently impractical to provide certain information on our revenue from our customers for each of our services and geographic information on our revenues and long-lived assets.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Restricted Cash

Restricted cash primarily includes deposits in trust accounts to collateralize letters of credit and to fund workers' compensation claims, landing fees, and other business needs. Restricted cash is stated at cost, which approximates fair value.

The Company has an agreement with a financial institution for a $6.0 million letter of credit facility to issue letters of credit for landing fees, workers' compensation insurance, and other business needs. Pursuant to such agreement, $3.3 million and $3.4 million of outstanding letters of credit are required to be collateralized by amounts on deposit as of September 30, 2022 and 2021, respectively, which are classified as restricted cash.

Expendable Parts and Supplies

Expendable parts and supplies are stated at cost, less an allowance for obsolescence. The Company provides an allowance for obsolescence for such parts and supplies over the useful life of its aircraft after considering the useful life of each aircraft fleet, the estimated cost of expendable parts expected to be on hand at the end of the useful life, and the estimated salvage value of the parts. This allowance for expendable parts account was $3.8 million and $3.2 million as of September 30, 2022 and 2021, respectively.

Property and Equipment

Property and equipment are stated at cost, net of manufacturer incentives, and depreciated over their estimated useful lives to their estimated salvage values, which are 20% for aircraft and rotable spare parts, using the straight-line method.

Estimated useful lives of the various classifications of property and equipment are as follows:

Property and Equipment		Estimated Useful Life
Buildings		30 years
Aircraft		25 years from the manufacture date
Flight equipment		7-20 years
Equipment		5-9 years
Furniture and fixtures		3-5 years
Vehicles		5 years
Rotable spare parts		Life of the aircraft or term of the lease, whichever is less
Leasehold improvements		Life of the aircraft or term of the lease, whichever is less

Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may be impaired. The Company records an impairment loss if (i) the undiscounted future cash flows are found to be less than the carrying amount of the asset or asset group, and (ii) the carrying amount of the asset or asset group exceeds its fair value. If an impairment loss has occurred, a charge is recorded to reduce the carrying amount of the asset to its estimated fair value.

To determine whether impairments exist for aircraft and other related assets used in operations, we group assets at the capacity purchase agreement, flight services agreement, or fleet type level (i.e., the lowest level for which there are identifiable cash flows) and then estimate future cash flows based on projections of capacity purchase or flight services agreement, block hours, maintenance events, labor costs and other relevant factors. If an asset group is impaired, the impairment loss recognized is the amount by which the asset group's carrying amount exceeds its estimated fair value. We estimate aircraft fair values using published sources, appraisals and bids received from third parties, as available. Due to the impacts of the pilot shortage and the pilot wage increase, we evaluated all asset groups during the quarter ended September 30, 2022 and determined that only the asset group associated with the CRJ-900 fleet operating under the American CPA was impaired as discussed in Note 8 - "Balance Sheet Information", because the future cash flows from the operation of other asset groups through the respective retirement dates exceeded the carrying value. The Company recognized impairment charges of $109.7 million, zero, and zero on property and equipment and other long-lived and ROU assets for the years ended September 30, 2022, 2021, and 2020 respectively.

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 (1) 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 7 – “Assets Held for Sale” for further discussion of our assets classified as held for sale as of September 30, 2022

Fair Value Measurements

The Company accounts for assets and liabilities in accordance with accounting standards that define fair value and establish a consistent framework for measuring fair value on either a recurring or a nonrecurring basis. 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.

Debt Financing Costs

Debt financing costs consist of payments made to issue debt related to the purchase of aircraft, flight equipment, and certain flight equipment maintenance costs. The Company defers the costs and amortizes them to interest expense over the term of the debt agreement. Debt financing costs related to a recognized debt liability are presented as a direct deduction from the carrying amount of the related long-term debt on the consolidated balance sheet. Debt financing costs with no related recognized debt liability are presented as assets, with the current portion included in prepaid expenses and other current assets and the noncurrent portion included in other assets on the consolidated balance sheet.

Unutilized Manufacturer Credits

Manufacturer credits received in connection with aircraft purchases that can be used for the future purchase of certain goods and services are recorded as a prepaid asset based on the value of the credits expected to be utilized, and the Company reduces the asset as the credits are utilized to fund such purchases. The current portion is included in prepaid expenses and other current assets and the noncurrent portion is included in other assets on the consolidated balance sheet.

Intangible Assets

Customer relationships are amortized over their estimated useful lives. In accordance with ASC 360, Property, Plant, and Equipment, an intangible asset with a finite life that is being amortized is reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may be impaired. The Company records an impairment loss if the undiscounted future cash flows are found to be less than the carrying amount of the asset and if the carrying amount of the asset exceeds fair value. If an impairment loss has occurred, a charge is recorded to reduce the carrying amount of the asset to its estimated fair value. The Company recognized an impairment loss of $1.9 million, zero, and zero on intangible assets for the year ended September 30, 2022, 2021, and 2020 respectively.

Other Assets

Other noncurrent assets primarily consist of the non-current portion of lease incentives related to aircraft which Mesa leases to third parties and investments in equity securities.

Lease incentives represent amounts paid or payable by Mesa to the lessee and are amortized as a reduction of lease revenue over the term of the lease. The current portion of the lease incentive assets is included in prepaid expenses and other current assets, and the non-current portion is included in other assets on the consolidated balance sheet.

Investments in equity securities with readily determinable fair values are adjusted to reflect the market value of the investments each reporting period, with corresponding gains and losses reflected in the statement of operations. Investments in equity securities without readily determinable values are measured at cost less impairment, if any, and are adjusted when there are observable prices of similar or identical investments from the same issuer.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in future years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company records deferred tax assets for the value of benefits expected to be realized from the utilization of state and federal net operating loss carryforwards. The Company periodically reviews these assets to determine the likelihood of realization. To the extent the Company believes some portion of the benefit may not be realizable based on the available sources of income, an estimate of the unrealized position is made, and a valuation allowance is recorded. The Company and its consolidated subsidiaries file a consolidated federal income tax return.

Other Noncurrent Liabilities

Other noncurrent liabilities primarily consist of the non-current portion of lease incentive obligations and deposits related to the aircraft which Mesa leases to third parties and vendor credit liabilities for future purchases of electric aircraft.

Revenue Recognition

The Company recognizes revenue when the service is provided under its capacity purchase agreements and flight services agreement. Under these agreements, the Company’s major partners generally pay a fixed monthly minimum amount per aircraft, plus certain additional amounts based upon the number of departures and block hours or flight hours flown. The agreements also include reimbursement of certain direct costs incurred by the Company in performing flight services. These costs, known as "pass-through costs," may include passenger and hull insurance as well as aircraft property taxes. Additionally, for the E-175 aircraft owned by United, United reimburses the Company for heavy airframe and engine maintenance, landing gear maintenance, APU maintenance, and component maintenance. The Company also receives compensation under its agreements for heavy maintenance expenses at a fixed hourly rate or per aircraft rate for all aircraft in scheduled service other than the E-175 aircraft owned by United. The contracts also include a profit margin on certain reimbursable costs, as well as incentives and penalties based on certain operational benchmarks. The Company is eligible to receive incentive compensation upon the achievement of certain performance criteria defined in the agreements. At the end of each period during the term of an agreement, the Company calculates the incentives or penalties achieved during that period and recognizes revenue attributable to the agreement during the period accordingly, subject to the variable constraint guidance in accordance ASC 606. All revenue recognized under these contracts is presented as the gross amount billed to the major partners. See Note 3 - “Contract Revenue and Pass-through and Other Revenue” for further information.

The Company has committed to perform various activities that can be generally classified into in-flight services and maintenance services. When evaluating these services, the Company determined that the nature of its promise is to provide a single integrated service, flight services, because its contracts require integration and assumption of risk associated with both services to effectively deliver and provide the flights as scheduled over the contract term. Therefore, the in-flight services and maintenance services are inputs to that combined integrated flight service. Both the services occur over the term of the agreement and the performance of maintenance services significantly effects the utility of the in-flight services. The Company's individual flights flown under the capacity purchase agreements and flight services agreement are deemed to be distinct and the flight service promised in the agreements represents a series of services that should be accounted for as a single performance obligation. This single performance obligation is satisfied over time as the flights are completed. Therefore, revenue is recognized when each flight is completed.

In allocating the transaction price, variable payments (i.e., billings based on departures and block hours or flight hours flown, pass-through costs, etc.) that relate specifically to the Company's efforts in performing flight services are recognized in the period in which the individual flight is completed. The Company has concluded that allocating the variability directly to the individual flights results in an overall allocation meeting the objectives in ASC 606. This results in a pattern of revenue recognition that follows the variable amounts billed from the Company to its customers.

A portion of the Company's compensation under its capacity purchase agreements 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. The Company has concluded that a component of its revenue under these agreements is deemed to be 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 the Company's capacity purchase agreements is accounted for as an operating lease and is reflected as contract revenue on the Company's consolidated statements of operations and comprehensive (loss) income.

The Company recognized $158.4 million, $170.2 million and $208.9 million of lease revenue for the year ended September 30, 2022, 2021, and 2020, respectively. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statements of operations and comprehensive (loss) income because the use of the aircraft is not a separate activity of the total service provided under our capacity purchase agreements.

The Company's capacity purchase agreements and flight services agreement are renewable periodically and contain provisions pursuant to which the parties could terminate their respective agreements, or withdraw aircraft under their respective agreements, subject to certain conditions as described in Note 1. The agreements also contain terms with respect to covered aircraft, services provided, and compensation as described in Note 1. The agreements are amended from time to time to change, add, or delete terms of the agreements.

The Company's revenues could be impacted by a number of factors, including amendment or termination of its agreements with its major partners, contract modifications resulting from contract renegotiations, its ability to earn incentive payments contemplated under applicable agreements, and settlement of reimbursement disputes with the Company's major partners. In the event contracted rates are not finalized at a quarterly or annual financial statement date, the Company evaluates the enforceability of its contractual terms and when it has an enforceable right, it estimates the amount the Company expects to be entitled to that is subject to the variable constraint guidance within ASC 606.

The Company's agreements contain an option that allows its major partners to assume the contractual responsibility for procuring and providing the fuel necessary to operate the flights that it operates for them. All of the Company's major partners have exercised this option. Accordingly, the Company does not record an expense or revenue for fuel and related fueling costs for flying under its capacity purchase agreements or flight services agreement. In addition, the Company's major partners also provide, at no cost to the Company, certain ground handling and customer service functions, as well as airport-related facilities and gates at their hubs and other cities. Services and facilities provided by the Company's major partners at no cost are presented net in its consolidated financial statements; hence, no amounts are recorded as revenue or operating expense for these items.

Contract Liabilities

Contract liabilities consist of deferred credits representing upfront payments received from major partners related to aircraft modifications associated with capacity purchase agreements and pilot training. The deferred credits are recognized over time depicting the pattern of transfer of the related services over the term of the capacity purchase agreements.

Current and non-current deferred credits are recorded to other accrued expenses and non-current deferred credits in the consolidated balance sheets, respectively. The Company's total current and non-current deferred credit balances at September 30, 2022 and September 30, 2021 were $3.9 million and $4.8 million, respectively. The Company recognized $0.9 million, $2.4 million and $3.7 million of the deferred credits within contract revenue in the consolidated statements of operations and comprehensive (loss) income during the year ended September 30, 2022, 2021, and 2020, respectively.

Contract Assets

The Company recognizes assets from the incremental costs incurred to obtain contracts with major partners including aircraft painting, aircraft reconfiguration, and flight service personnel training costs. These costs are amortized based on the pattern of transfer of the services in relation to flight hours over the term of the contract. Contract assets are recorded as other assets in the consolidated balance sheets. The Company's contract assets balance at September 30, 2022 and September 30, 2021 was zero and zero, respectively. Contract cost amortization was zero, $2.0 million and $1.9 million for the year ended September 30, 2022, 2021, and 2020, respectively.

Maintenance Expense

The Company operates 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.

The Company accounts for heavy maintenance and major overhaul costs on its 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 $1.9 million, $0.4 million, and zero for the fiscal year ended September 30, 2022, 2021, and 2020, respectively. At September 30, 2022 and September 30, 2021, the Company had a deferred heavy maintenance balance, net of accumulated amortization, of $9.7 million and $3.5 million, respectively. The Company accounts 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. Our maintenance policy is determined by fleet when major maintenance is incurred.

Under the Company's aircraft operating lease agreements and FAA operating regulations, it is obligated to perform all required maintenance activities on its fleet, including component repairs, scheduled airframe checks and major engine restoration events. The Company estimates the timing of the next major maintenance event based on assumptions including estimated usage, FAA-mandated maintenance intervals, and average removal times as recommended by the manufacturer. The timing and the cost of maintenance are based on estimates, which can be impacted by changes in utilization of its aircraft, changes in government regulations and suggested manufacturer maintenance intervals. Major maintenance events consist of overhauls to major components.

Engine overhaul expense totaled $23.6 million, $31.4 million and $40.5 million for the years ended September 30, 2022, 2021, and 2020, respectively, of which $21.7 million, $16.8 million, and $7.0 million, respectively, was pass-through expense. Airframe check expense totaled $22.1 million, $51.1 million and $23.5 million for the years ended September 30, 2022, 2021, and 2020, respectively, of which $3.2 million, $20.5 million, and $7.2 million, respectively, was pass-through expense.

Pursuant to the United CPA, United reimburses the Company for heavy maintenance on certain E-175 aircraft. Those reimbursements are included in pass-through and other revenue. See Note 1 - "Organization and Operations" for further information.

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 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 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. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. 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. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Our lease terms may 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.

To determine whether impairments exist for aircraft and other related assets used in operations, we group assets, including ROU assets, at the capacity purchase agreement, flight services agreement, or fleet type level (i.e., the lowest level for which there are identifiable cash flows) and then estimate future cash flows based on projections of capacity purchase or flight services agreement, block hours, maintenance events, labor costs and other relevant factors. Due to the impacts of the pilot shortage and the pilot wage increase, we evaluated all asset groups during the quarter ended September 30, 2022 and determined that the asset group associated with the CRJ-900 fleet operating under the American CPA, discussed in Note 8 – “Balance Sheet Information”, required impairment. This resulted in an impairment loss of $15.2 million to the leased aircraft in the asset group for the CRJ-900 fleet operating for the quarter ended September 30, 2022, which was recorded in asset impairment on our consolidated statements of operations and comprehensive (loss) income.

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 this standard to leases with terms of 12 months or less.

Our capacity purchase agreements identify the "right of use" of a specific type and number of aircraft over a stated period-of-time. A portion of the compensation under our capacity purchase agreements are designed to reimburse the Company, as lessor, for certain aircraft ownership costs of these aircraft. We account for the non-lease component under ASC 606 and account for the lease component under ASC 842. We allocate the consideration in the contract between the lease and non-lease components based on their stated contract prices, which is based on a cost basis approach representing our estimate of the stand-alone selling prices.

As discussed in Note 1, 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 nominal leases with our major partners, 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 will be written off.

The majority of the Company's leased aircraft are leased through trusts that have a sole purpose to purchase, finance, and lease these aircraft to the Company; therefore, they meet the criteria of a variable interest entity. However, since these are single-owner trusts in which the Company does not participate, the Company is not at risk for losses and is not considered the primary beneficiary. Management believes that the Company's maximum exposure under these leases is the remaining lease payments.

Contract Revenue and Pass-through and Other Revenue

12 Months Ended

Sep. 30, 2022

Revenue From Contract With Customer [Abstract]

Contract Revenue and Pass-through and Other Revenue

3.	Contract Revenue and Pass-through and Other Revenue

The Company recognizes contract revenue when the service is provided under its capacity purchase agreements and flight services agreement. Under the capacity purchase agreements and flight services agreement, our major partners generally pay for each departure, flight hour (measured from takeoff to landing, excluding taxi time) or block hour (measured from takeoff to landing, including taxi time) incurred, and an amount per aircraft in service each month with additional incentives based on flight completion, on-time performance, and other operating metrics. The Company’s performance obligation is met when each flight is completed, and revenue is recognized and reflected in contract revenue.

The Company’s contract revenue also includes temporary rate reductions during fiscal year 2021 under our capacity purchase agreements. The basis for the reductions is temporary improvements in our cost structure being passed on to our major partners, primarily from lower labor costs due to the grants received under the Payroll Support Program and its extensions through the year ended September 30, 2021. The Company’s contract revenue for fiscal year ended September 30, 2022 does not include any rate reductions.

The Company recognizes pass-through revenue when the service is provided under its capacity purchase agreements and flight services agreement. Pass-through revenue represents reimbursements for certain direct expenses incurred including passenger liability and hull insurance, property taxes, other direct costs defined within the agreements, and major maintenance on aircraft leased at nominal rates. The Company’s performance obligation is met when each flight is completed or as the maintenance services are performed, and revenue is recognized and reflected in pass-through and other revenue.

The Company records deferred revenue when cash payments are received or are due from our major partners in advance of the Company’s performance, including amounts that are refundable. The Company deferred $10.4 million and $10.7 million of revenue during the years ended September 30, 2022 and September 30, 2021, respectively, which was billed to and paid by our major partners. Deferred revenue is recognized as flights are completed over the remaining contract term.

The deferred revenue balance as of September 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
September 30,	Total Revenue
2023	$	385
2024		2,553
2025		10,065
2026		4,792
2027		3,679
Thereafter		2,593

Total

24,067

A portion of the Company's compensation under its capacity purchase agreements 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. The Company has concluded that a component of its revenue under these agreements is deemed to be lease revenue, as such agreements identify the "right of use" of a specific type and number of aircraft over a stated period-of-time. We account for the non-lease component under ASC 606 and account for the lease component under ASC 842. We allocate the consideration in the contract between the lease and non-lease components based on their stated contract prices, which is based on a cost basis approach representing our estimate of the stand-alone selling prices.

The lease revenue associated with the Company's capacity purchase agreements is accounted for as an operating lease and is reflected as contract revenue on the Company's consolidated statements of operations and comprehensive (loss) income. The Company recognized $158.4 million, $170.2 million, and $208.9 million of lease revenue for the years ended September 30, 2022, 2021, and 2020, respectively. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statements of operations and comprehensive (loss) income because the use of the aircraft is not a separate activity from the total service provided under our capacity purchase agreements.

Historically, the Company entered into lease agreements with GoJet Airlines LLC (“GoJet”) to lease CRJ-700 aircraft. The lease agreements were accounted for as operating leases and had a term of nine (9) years beginning on the delivery date of each aircraft. Under the lease agreements, GoJet paid fixed monthly rent per aircraft and variable lease payments for supplemental rent based on monthly aircraft utilization at fixed rates. Supplemental rent payments were subject to reimbursement following GoJet’s completion of qualifying maintenance events defined in the agreements. Lease revenue for fixed monthly rent payments were recognized on a straight-line basis within contract revenue. Lease revenue for supplemental rent was deferred and recognized within contract revenue when it was probable that amounts received will not be reimbursed for future qualifying maintenance events over the lease term.

The Company mitigated the residual asset risks through supplemental rent payments and by leasing aircraft and engine types that can be operated by the Company in the event of a default. Additionally, the operating leases included specified lease return condition requirements and the Company maintains inspection rights under the leases. Lease incentive obligations for reimbursements of certain aircraft maintenance costs are recognized as lease incentive assets and were amortized on a straight-line basis and recognized as a reduction to lease revenue over the lease term.

During August of 2022, the Company classified 18 CRJ-700 aircraft as assets held for sale (see Note 7) and terminated all lease agreements with GoJet. As a result of the lease termination, the Company recognized a loss from immediately derecognizing lease incentive assets of $3.2 million. This loss is recorded in operating expense. Prior to the lease termination, lease revenue recognized under the GoJet agreements, net of amortization of the lease incentive assets, was $30.0 million, $9.5 million, and zero for the years ended September 30, 2022, 2021, and 2020 respectively.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/topic&trid=49130388

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+ Details

Recent Accounting Pronouncements

12 Months Ended

Sep. 30, 2022

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

4.	Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (“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 other reference rates expected to be discontinued. Optional expedients can be applied from March 12, 2020 through December 31, 2022. We are currently evaluating the impact that the new guidance will have on our consolidated financial statements.

In March 2022, the FASB issued new guidance to expand the scope of financial assets that can be included in a closed portfolio hedged using the portfolio layer method to allow consistent accounting for similar hedges. The expanded scope permits the application of the same portfolio hedging method to both prepayable and non-prepayable financial assets. The standard will be effective for annual reporting periods beginning after December 15, 2022, including interim reporting periods within those fiscal years. We are currently evaluating the impact that the new guidance will have on our consolidated financial statements.

In June 2022, the FASB issued new guidance to clarify the fair value measurement guidance for equity securities subject to contractual restrictions that prohibit the sale of an equity security. Further, the guidance introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. The standard will be effective for annual reporting periods beginning after December 15, 2023, including interim reporting periods within those fiscal years. We are currently evaluating the impact that the new guidance will have on our consolidated financial statements.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Concentrations of Credit Risk

12 Months Ended

Sep. 30, 2022

Risks And Uncertainties [Abstract]

Concentrations of Credit Risk

5.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. The Company maintains its cash accounts with high credit quality financial institutions and, accordingly, minimal credit risk exists with respect to the financial institutions. As of September 30, 2022, the Company 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 and $3.4 million of outstanding letters of credit are required to be collateralized by amounts on deposit as of September 30, 2022 and 2021, respectively, which are classified as restricted cash.

Significant customers are those which represent more than 10% of the Company’s total revenue or net accounts receivable balance at each respective balance sheet date. At September 30, 2022, the Company had capacity purchase agreements with American and United and a flight services agreement with DHL. Substantially all of the Company's consolidated revenue for the years ended September 30, 2022, 2021, and 2020 and accounts receivable at the end of September 30, 2022 and 2021 was derived from these agreements. In certain cases, the terms of these agreements are not aligned with the lease obligations on the aircraft performing services under such agreements.

Amounts billed by the Company under these agreements are subject to the Company's interpretation of the applicable agreement and are subject to audit by the Company's major partners. Periodically, the Company's 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, the Company reviews amounts due based on historical collection trends, the financial condition of major partners and current external market factors and records a reserve for amounts estimated to be uncollectible. The allowance for doubtful accounts was not material at September 30, 2022 and 2021, respectively. If the Company's ability to collect these receivables and the financial viability of our major partners is materially different than estimated, the Company's estimate of the allowance could be materially impacted.

American accounted for approximately 45%, 45% and 52% of the Company's total revenue for the years ended September 30, 2022, 2021, and 2020, respectively. United accounted for approximately 48%, 52% and 48% of the Company's total revenue for the years ended September 30, 2022, 2021, and 2020, respectively. A termination of either the American or the United capacity purchase agreement would have a material adverse effect on the Company's business prospects, financial condition, results of operations, and cash flows.

Intangible Assets

12 Months Ended

Sep. 30, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

6.	Intangible Assets

The Company includes its intangible assets of customer relationship in the asset group associated with the CRJ-900 fleet operating under the American CPA and monitors for any indicators of impairment of the asset group. When certain conditions or changes in the economic situation exist, the asset group may be impaired if the carrying amount of the assets is not recoverable and that carrying amount exceeds the asset group’s fair value. Due to the impacts of the pilot shortage and the pilot wage increase, we evaluated all asset groups during the quarter ended September 30, 2022 and determined that the asset group for the CRJ-900 fleet operating under the American CPA was impaired. As a result, the Company recognized an impairment loss of $1.9 million on the customer relationship related to the CRJ-900 fleet operating under the American CPA during the quarter ended September 30, 2022, which was recorded in asset impairment on our consolidated statements of operations and comprehensive (loss) income. The Company did not record any impairment losses related to its intangible assets during the years ended September 30, 2021 and 2020.

Information about the intangible assets of the Company at September 30, 2022 and 2021, is as follows (in thousands):

	September 30,			September 30,
	2022			2021
Customer relationship	$	43,800		$	43,800
Accumulated amortization		(38,029	)		(37,008	)
Impairment		(1,929	)		-
Net carrying value	$	3,842		$	6,792

Total amortization expense recognized was approximately $1.0 million, $1.2 million, and $1.5 million for the fiscal years ended September 30, 2022, 2021, and 2020. The Company’s intangible assets have a remaining amortization period

of three (3) years. The Company expects to record amortization expense of $1.3 million, $1.3 million, and $1.2 million for fiscal years 2023, 2024, and 2025, respectively.

Assets Held for Sale

12 Months Ended

Sep. 30, 2022

Discontinued Operations And Disposal Groups [Abstract]

Assets Held for Sale

7. Assets Held for Sale

During 2022, our management committed to a formal plan to sell certain of our CRJ-900, CRJ-200, and CRJ-700 aircraft. The aircraft are expected to be disposed of via sale by December 31, 2022. Accordingly, we determined the aircraft met the criteria to be classified as assets held for sale and have separately presented them in our 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 $62.0 million, which are reflected within impairment of assets held for sale in our consolidated statements of operations and comprehensive (loss) income (loss).

In September 2022, the Company completed the sale of 10 CRJ-700 aircraft for $50.0 million in cash proceeds. The disposed aircraft had a held for sale value of $45.3 million and the Company recognized $4.7 million of gain on sale, which is reflected within gain on sale of aircraft on our consolidated statements of operations and comprehensive (loss) income.

As of September 30, 2022, the Company has 11 CRJ-900 aircraft, eight (8) CRJ-700 aircraft, and one (1) CRJ-200 aircraft that are classified as assets held for sale with a net book value of $73.0 million, which is reflected within assets held for sale on our consolidated balance sheet.

Balance Sheet Information

12 Months Ended

Sep. 30, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Balance Sheet Information

8.	Balance Sheet Information

Certain significant amounts included in the Company's consolidated balance sheets as of September 30, 2022 and 2021, consisted of the following (in thousands):

	September 30,			September 30,
	2022			2021
Expendable parts and supplies, net:
Expendable parts and supplies	$	31,913		$	29,297
Less: obsolescence and other		(5,198	)		(4,830	)
	$	26,715		$	24,467
Prepaid expenses and other current assets:
Prepaid aviation insurance	$	2,618		$	2,171
Prepaid vendors		1,310		893
Prepaid other insurance		1,268			1,323
Lease Incentives		352			1,445
Other		1,068			1,053
	$	6,616		$	6,885
Property and equipment, net:
Aircraft and other flight equipment substantially pledged	$	1,260,143		$	1,611,544
Other equipment		5,577			4,934
Leasehold improvements		2,776			2,776
Vehicles		992			1,184
Building		777			699
Furniture and fixtures		298			300
Total property and equipment		1,270,563			1,621,437
Less: accumulated depreciation		(405,309	)		(469,546	)
	$	865,254		$	1,151,891
Other assets:
Investments in equity securities	$	15,178		$	25,149
Lease incentives		1,097			10,957
Other		15			15
	$	16,290		$	36,121
Other accrued expenses:
Accrued property taxes	$	5,866		$	8,783
Accrued interest		2,882			2,565
Accrued vacation		4,746			5,936
Accrued lodging		3,795			3,380
Accrued maintenance		1,453			1,580
Accrued liability on government payroll program		2,967			2,775
Accrued simulator costs		1,045		457
Accrued employee benefits		1,679		981
Accrued fleet operating expense		1,606		786
Short term lease incentive liability	97				3,318
Other		2,864			3,096
	$	29,000		$	33,657
Other noncurrent liabilities:
Warrant liabilities	$	25,225		$	21,964
Lease incentive obligations		1,050			6,358
Long term employee benefits		1,123			1,447
Long term liability on government payroll program	—				2,775
Other		1,821			2,047
	$	29,219		$	34,591

Impairment of long-lived assets

The Company monitors for any indicators of impairment of the long-lived fixed assets. When certain conditions or changes in the economic situation exist, the assets may be impaired and the carrying amount of the assets exceed its fair value. The assets are then tested for recoverability of carrying amount. The Company records 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 group assets at the capacity purchase agreement, flight services agreement, and fleet-type level (i.e., the lowest level for which there are identifiable cash flows). If impairment indicators exist with respect to any of the asset groups, we estimate future cash flows based on projections of capacity purchase or flight services agreement, block hours, maintenance events, labor costs and other relevant factors.

Due to the impacts of the pilot shortage and the pilot wage increase, the Company assessed whether any impairment of its long-lived assets existed for all asset groups during the quarter ended September 30, 2022. The Company has determined that impairment charges were deemed necessary only for the asset group associated with the CRJ-900 fleet operating under the American CPA because the future cash flows from the operation of other asset groups through the respective retirement dates exceeded the carrying value. The asset group associated with the CRJ-900 fleet includes owned aircraft, leased aircraft, intangible assets of customer relationship, and other relevant long-lived assets. The fair values of assets within the CRJ-900 fleet were calculated using Level 3 fair value inputs based primarily upon recent market transactions, appraisals, and third-party bids, which were corroborated with published pricing guides and our assessment of existing market conditions based on industry knowledge. For the year ended September 30, 2022, the Company recognized a total impairment loss of $109.7 million related to the asset group associate with the CRJ-900 fleet, of which $92.6 million was related to property and equipment, $15.2 million was related to operating lease right-of-use assets, and $1.9 million was related to intangible asset of customer relationship. These impairment charges were recorded in asset impairment on our consolidated statements of operations and comprehensive (loss) income. The Company did not record any impairment losses related to its long-lived assets during the years ended September 30, 2021 and 2020.

The Company’s assumptions about future conditions important to its assessment of potential impairment of its long-lived assets, including the impact of the COVID-19 pandemic to its business, are subject to uncertainty, and the Company will continue to monitor these conditions in future periods as new information becomes available, and will update its analyses accordingly.

Depreciation Expense on Property and Equipment

Depreciation expense on property and equipment totaled $80.5 million, $81.2 million and $80.8 million for the years ended September 30, 2022, 2021, and 2020, respectively.

Other Assets

In connection with a negotiated forward purchase contract for electrically-powered vertical takeoff and landing aircraft (“eVTOL aircraft”) executed in February 2021, we obtained equity warrant assets giving us the right to acquire a number shares of common stock in Archer Aviation, Inc. (“Archer”), which at the time of our initial investment was a private, venture-backed company. As the initial investment in Archer did not have a readily determinable fair value, we accounted for this investment using the measurement alternative under ASC 321 and measured 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 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.

The initial grant date value of the warrants, $16.4 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 eVTOL aircraft contemplated in the related aircraft purchase agreement.

In connection with closing of the merger between Archer and the SPAC described above, in September 2021, we purchased 500,000 Class A common shares in Archer for $5.0 million, and obtained an additional warrant to purchase shares of Archer with a total grant date value of $5.6 million. The initial value of the warrants was recognized as a vendor credit liability within other noncurrent liabilities, and 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. Because these investments have readily

determinable fair values, gains and losses resulting from changes in fair value of the investments are reflected in earnings, in accordance with ASC 321. All of our vested warrants have been exercised into shares of Archer common stock.

Losses on our investments in Archer totaled $13.7 million and $6.8 million during the fiscal years ended September 30, 2022 and 2021, and are reflected in loss on investments, net in our Consolidated Statements of Operations and Comprehensive (Loss) Income.

The fair values of the Company’s investments in Archer are 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, in other income (expense), net. The initial investment in preferred stock was measured at cost of $5.0 million. There were no identical or similar transactions during the fiscal year ended September 30, 2022, and as such, no adjustments to the initial cost of the equity investment resulting from observable price changes have been recorded at September 30, 2022.

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 $13.7 million during the year ended September 30, 2022, respectively, and are reflected in loss on investments, net in our consolidated statements of operations and comprehensive (loss) income. As of September 30, 2022, the aggregate carrying amount of our investments in equity securities was $15.2 million, and the carrying amount of our investments without readily determinable fair values was $9.0 million.

Fair Value Measurements

12 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

9.	Fair Value Measurements

Other than our assets held for sale, asset group associated with the CRJ-900 fleet, and investments in equity securities described in Notes 7 and 8, respectively, we did not measure any of our assets or liabilities at fair value on a recurring or nonrecurring basis as of September 30, 2022 and 2021.

The carrying values of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable included on the consolidated balance sheets approximated fair value at September 30, 2022 and 2021 because of the immediate or short-term maturity of these financial instruments.

The Company's debt agreements are not traded on an active market. The Company has determined the estimated fair value of its 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. The Company utilizes the discounted cash flow method to estimate the fair value of Level 3 debt.

The carrying value and estimated fair value of the Company's long-term debt, including current maturities, were as follows (in millions):

	September 30, 2022				September 30, 2021
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Long-term debt, including current maturities⁽¹⁾	$	615.3	$	541.7	$	670.3	$	676.8

⁽¹⁾	Current and prior period long-term debts' carrying and fair values exclude net debt issuance costs.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Long-Term Debt, Finance Leases, and Other Borrowings

12 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Long-Term Debt, Finance Leases, and Other Borrowings

10.	Long-Term Debt, Finance Leases, and Other Borrowings

Long-term debt as of September 30, 2022 and 2021, consisted of the following (in thousands):

		September 30,				September 30,
		2022				2021
Senior and subordinated notes payable to secured parties, due in monthly installments, interest based on LIBOR plus interest spread at 2.71% through 2027, collateralized by the underlying aircraft	$		73,850		$		86,551
Notes payable to secured parties, due in semi-annual installments, interest based on LIBOR plus interest spread at 4.75% to 6.25% through 2028, collateralized by the underlying aircraft			131,010				152,100
Notes payable to secured parties, due in quarterly installments, interest based on LIBOR plus interest at spread 2.20% to 2.32% for senior note & 4.50% for subordinated note through 2028, collateralized by the underlying aircraft			106,865				122,762
Other obligations due to financial institution, monthly and/or quarterly interest due from 2022 through 2031, collateralized by the underlying equipment			18,038				4,581
Notes payable to financial institution, due in monthly installments, interest based on LIBOR plus interest spread at 3.10% through 2024, collateralized by the underlying equipment			26,758				45,559
Notes payable to financial institution, due in monthly installments, plus interest spread at 5.00% through 2022, collateralized by the underlying aircraft			-				30,625
Notes payable to financial institution, due in monthly installments, plus interest spread at 5.00% through 2023, secured by flight equipment			2,000				4,000
Revolving credit facility, monthly interest based on LIBOR plus interest spread at 3.75% through 2022			15,630				22,930
Notes payable to financial institution, quarterly interest based on LIBOR plus interest spread at 3.50% through 2027			204,947				201,227
Notes payable to financial institution, due in monthly installments, interest based on LIBOR plus interest spread at 4.24%, through 2027, collateralized by the underlying equipment			36,212				-
Gross long-term debt, including current maturities	$		615,310		$		670,335
Less unamortized debt issuance costs			(8,303	)			(9,295	)
Less notes payable warrants			(7,272	)			(9,630	)
Net long-term debt, including current maturities	$		599,735		$		651,410
Less current portion, net of unamortized debt issuance costs			(97,218	)			(111,710	)
Net long-term debt	$		502,517		$		539,700

Principal maturities of long-term debt as of September 30, 2022, and for each of the next five (5) years are as follows (in thousands):

	Total Principal
Periods Ending September 30,	Amount
2023	$	99,102
2024		73,374
2025		64,512
2026		271,824
2027		63,958
Thereafter		42,540
	$	615,310

The net book value of collateralized aircraft and equipment as of September 30, 2022 was $856.9. 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. At September 30, 2022, Mesa has $131.0 million of equipment notes outstanding issued under the EETC financing included in long-term debt on the 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 of the issuance of the pass-through certificates were used to purchase equipment notes which were issued by Mesa and secured by its aircraft. The payment obligations under the equipment notes are those of Mesa. Proceeds received from the sale of pass-through certificates were initially held by a depositary in escrow for the benefit of the certificate holders until Mesa issued equipment notes to the trust, which purchased such notes with a portion of the escrowed funds.

Mesa evaluated whether the pass-through trust formed for its EETC financing is a variable interest entity ("VIE") and required to be consolidated. The pass-through trust was determined to be a VIE; however, the Company has determined that it is not the primary beneficiary of the pass-through trust, and therefore, has not consolidated the pass-through trust with its financial statements.

CIT Revolving Credit Facility

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.

As of September 30, 2022, $15.6 million of the draw loan remained outstanding. Future borrowings, if any, under this facility are subject to, among other things, the Company having sufficient unencumbered assets to meet the borrowing base requirements under the facility.

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 year September 30, 2022. As a result, we are in compliance with this covenant.

Loan Agreement with the United States Department of the Treasury

On October 30, 2020, the Company entered into a Loan and Guarantee Agreement with U.S. Department of the Treasury (the “U.S. Treasury”) for a secured loan facility of up to $200.0 million that matures in October 2025 (“the Treasury Loan”). On October 30, 2020, the Company borrowed $43.0 million and on November 13, 2020, the Company borrowed an additional $152.0 million. No further borrowings are available under the Treasury Loan. The Company also issued warrants to purchase shares of common stock to the U.S. Treasury.

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 on the first business day following the 14th day of each March, June, September, and December, beginning with December 15, 2020.

All principal amounts outstanding under the Treasury Loan are due and payable in a single installment on October 30, 2025 (the “Maturity Date”). Interest is paid in kind by increasing the principal amount of the loan by the amount of such

interest due on an interest payment date for the first 12 months of the loan. Mesa's obligations under the Treasury Loan are secured by certain aircraft, aircraft engines, accounts receivable, ground service equipment, and tooling (collectively, the “Collateral”). The obligations under the Treasury Loan are guaranteed by the Company and Mesa Air Group Inventory Management. The proceeds were used for general corporate purposes and operating expenses, to the extent permitted by the CARES Act. Voluntary prepayments of loans under the Treasury Loan may be made, in whole or in part, by Mesa Airlines, without premium or penalty, at any time and from time to time. Amounts prepaid may not be reborrowed. Mandatory prepayments of loans under the Treasury Loan are required, without premium or penalty, to the extent necessary to comply with the covenants discussed below, certain dispositions of the Collateral, certain debt issuances secured by liens on the Collateral and certain insurance payments related to the Collateral. In addition, if a “change of control” (as defined in the Treasury Loan) occurs with respect to Mesa Airlines, Mesa Airlines will be required to repay the loans outstanding under the Treasury Loan.

The Treasury Loan requires the Company, under certain circumstances, including within 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, Mesa Airlines will be required either to provide additional Collateral (which may include cash collateral) to secure its 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 (2) 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, the Company is 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, the Company issued to the U.S. Treasury warrants to purchase an aggregate of 4,899,497 shares of the Company’s common stock at an exercise price of $3.98 per share, which was the closing price of the Common Stock on The Nasdaq Stock Market 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 the Company’s option. For accounting purposes, the fair value for the Warrant 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 consolidated balance sheet.

The Company incurred $3.1 million in debt issuance costs relating to the Treasury Loan. In accordance with the applicable guidance, Mesa allocated the debt issuance costs between the Treasury Loan and related warrants. At funding on October 30, 2020, the initial $43.0 million was recorded net of $0.7 million in capitalized debt issuance costs. At funding on November 13, 2020, the remaining $152.0 million was recorded net of $2.3 million in capitalized debt issuance costs. The remaining $0.1 million in debt issuance costs was allocated to the warrants as a reduction to the warrant value within additional paid-in capital. Debt issuance costs allocated to the debt are amortized into interest expense using the effective interest method over the term of the related loan.

Prior to the November 13, 2020 funding of the $152.0 million portion of the Treasury Loan, the Company repaid $167.7 million in existing aircraft debt covering 44 aircraft, including indebtedness under its (a) Senior Loan Agreements, dated June 27, 2018, (b) Junior Loan Agreements, also dated June 27, 2018, (c) Credit Agreements, dated January 31, 2007, April 16, 2014, and May 23, 2014, (d) Senior Loan Agreements, dated December 27, 2017, and (e) Junior Loan Agreements, also dated December 27, 2017 (collectively, “the EDC Loans”). The Company made payments totaling $164.2 million to repay the EDC Loans, consisting of principal of $167.7 million, and a $3.5 million discount on the balance owed. Additionally, in connection with the repayment, $2.5 million of unamortized original issue discount and deferred financing costs were recorded as a loss on debt extinguishment, resulting in a net gain on extinguishment of $1.0 million recorded within other income.

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 of September 30, 2022, the Company is in compliance with all debt covenants.

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 borrowed amounts are collateralized by the underlying engines and require monthly principal and interest payments until maturity. Borrowings under the loan agreement bear interest at the monthly LIBOR plus 4.25%. The borrowings are the obligation of the newly formed LLC and are guaranteed by Mesa Airlines, Inc.

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 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 full month after closing and each June 1 and December 1 thereafter.

As of September 30, 2022, we were in compliance with all debt covenants.

Earnings Per Share

12 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

11.	Earnings Per Share

Calculations of net (loss) income per common share were as follows (in thousands, except per share data):

	Year Ended September 30,
	2022			2021		2020
Net (loss) income	$	(182,678	)	$	16,588	$	27,464
Basic weighted average common shares outstanding		36,133			35,713		35,237
Add: Incremental shares for:
Dilutive effect of warrants		—			2,543		—
Dilutive effect of restricted stock		—			587		71
Diluted weighted average common shares outstanding		36,133			38,843		35,308
Net (loss) income per common share
Basic	$	(5.06	)	$	0.46	$	0.78
Diluted	$	(5.06	)	$	0.43	$	0.78

Basic (loss) income per common share is computed by dividing net (loss) income 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 (excluding warrants with a nominal conversion price) is calculated by applying the treasury stock method. Share-based awards and warrants whose impact is considered to be anti-dilutive under the treasury stock method were excluded from the diluted net (loss) income 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 (in thousands) were excluded from the calculation of diluted net (loss) income per share because the effect of including such potentially dilutive shares would have been anti-dilutive:

	Year Ended September 30,
	2022		2021		2020
Warrants		758		—		—
Restricted stock		106		—		—
		864		—		—

Common Stock

12 Months Ended

Sep. 30, 2022

Stockholders Equity Note [Abstract]

Common Stock

12.Common Stock

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, the Company issued warrants to the U.S. Treasury to purchase shares of the Company’s common stock, no par value, at an exercise price of $3.98 per share (the “Exercise Price”), which was the closing price of the common stock on The Nasdaq Stock Market on April 9, 2020. The warrants were issued pursuant to the terms of a Treasury Warrant Agreement entered into by the Company and the U.S. Treasury. The exercise price and number of warrant 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 the Company’s option. The warrants are accounted for within equity at a grant date fair value determined under the Black Scholes Option Pricing Model. As of September 30, 2022, 4,899,497 warrants were issued and outstanding.

The Company has not historically paid dividends on shares of its common stock. Additionally, the Treasury Loan and the Company's aircraft lease facility (the "RASPRO" Lease Facility) with RASPRO Trust 2005, a pass-through trust contains restrictions that limit the Company's ability to or prohibit it from paying dividends to holders of its common stock.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 6
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008

+ Details

Income Taxes

12 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

13.	Income Taxes

The provision for income taxes consists of the following:

	Years Ended September 30,
	2022			2021			2020
	(in thousands)
Current
Federal	$	—		$	(39	)	$	—
State		231			202			297
	$	231		$	163		$	297
Deferred
Federal		(47,879	)		4,494			8,404
State		(4,342	)		1,171			830
	$	(52,221	)	$	5,665		$	9,234
(Benefit) provision for income taxes	$	(51,990	)	$	5,828		$	9,531

The reconciliation between the effective tax rate on income from continuing operations and the statutory tax rate is as follows:

	Years Ended September 30,
	2022			2021			2020
	(in thousands)
Income tax (benefit) provision at federal statutory rate	$	(49,280	)	$	4,707		$	7,769
(Reduction) increase in income taxes resulting from:
State taxes, net of federal tax benefit		(3,953	)		669			968
Nondeductible stock compensation expenses		251			(241	)		524
Permanent items		206			292			314
Change in valuation allowances		(22	)		(140	)		1,173
162(m) limitation		11			12			14
Impact of changing rates on deferred tax assets		(247	)		509			(2,313	)
Expired tax attributes		964			152			633
Other		80			(132	)		449
Income tax (benefit) provision	$	(51,990	)	$	5,828		$	9,531

The components of the Company's deferred taxes as of September 30, 2022 and 2021 are as follows:

	Years Ended September 30,
	2022			2021
	(in thousands)
Net operating loss carryforwards	$	131,897		$	121,604
Deferred credits		703			899
Other accrued expenses		1,769			2,682
Prepaids and other		1,175			1,969
Warrant liabilities		5,725			5,018
State alternative minimum tax		1			1
Other reserves and estimated losses		873			729
Operating lease liabilities		8,012			15,226
Deferred revenue		5,506			1,439
Gross deferred tax assets	$	155,661		$	149,567
Less: valuation allowance		(2,901	)		(2,922	)
Total net deferred tax assets	$	152,760		$	146,645

Intangible assets		(877	)		(1,552	)
Operating lease right-of-use assets		(2,055	)		(11,467	)
Property and equipment		(166,586	)		(200,105	)
Unrealized gain on equity investments		(961	)		(3,461	)
Total deferred tax liabilities	$	(170,479	)	$	(216,585	)
Net deferred tax liability	$	(17,719	)	$	(69,940	)

The Company has federal and state income tax net operating losses (“NOL”) carryforwards of $591.4 million and $247.0 million, which expire in fiscal years 2027-2038 and 2022-2042, respectively. Approximately $180.9 million of our federal NOL carryforwards are not subject to expiration. These NOL carryovers are only available to offset 80% of taxable income in years in which they are utilized due to tax law changes as a result of the Tax Cuts and Jobs Act.

The Company believes that it is more likely than not that the benefit from certain state NOL carryforwards will not be realized. In recognition of this risk, the Company has provided a valuation allowance of $2.9 million as of September 30, 2022 and $2.9 million as of September 30, 2021 on the deferred tax assets related to these state NOL carryforwards. If or when recognized, the tax benefits related to any reversal of the valuation allowance on deferred tax assets will be recognized as a reduction of income tax expense.

The federal and state NOL carryforwards in the income tax returns filed included unrecognized tax benefits. The deferred tax assets recognized for those NOLs are presented net of these unrecognized tax benefits.

Because of the change of ownership provisions of the Tax Reform Act of 1986, the use of a portion of our NOL and tax credit carryforwards may be limited in future periods. Further, a portion of the carryforwards may expire before being applied to reduce future income tax liabilities. The Company determined it had an ownership change in February of 2009. Based on the study conducted at that time, a portion of the federal NOLs were determined to be limited by IRC Section 382, resulting in the Company writing off a portion of its NOLs at that time. Additionally, the Company’s initial public offering in August of 2018 resulted in a change in ownership under Section 382 of the Internal Revenue Code. The Company completed an update to the analysis of any potential limitation on the use of its net operating losses under Section 382 for the fiscal year ended September 30, 2022. Based on such analysis, the Company does not believe any ownership changes during the review period will further limit its ability to use its current net operating losses to offset future taxable income, if any.

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:

	Years Ended September 30,
	2022		2021		2020
	(in thousands)
Unrecognized tax benefits — October 1	$	4,866	$	4,866	$	4,688
Gross decreases — tax positions in prior period		—		—		—
Gross increases — tax positions in prior period		—		—		178
Unrecognized tax benefits — September 30	$	4,866	$	4,866	$	4,866

The Company’s unrecognized tax benefits of $4.9 million, $4.9 million and $4.9 million as of September 30, 2022, 2021, and 2020, respectively, is included as an offset to the net deferred tax asset balance. If recognized, the balance of the uncertain tax benefits would impact the effective tax rate.

We recognize interest accrued related to unrecognized tax benefits and penalties as income tax expense. We have not recorded accrued penalties or interest related to the unrecognized tax benefits noted above as the amounts would result in an adjustment to NOL carryforwards.

We are subject to taxation in the United States and various states. As of September 30, 2022, the Company is no longer subject to U.S. federal or state examinations by taxing authorities for fiscal years prior to 2002.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

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-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
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-Subparagraph (SAB Topic 11.C)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Share-Based Compensation

12 Months Ended

Sep. 30, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

14.	Share-Based Compensation

Restricted Stock

The Company grants restricted stock units ("RSUs") as part of its long-term incentive compensation to employees and non-employee members of the Board of Directors. RSUs generally vest over a period of three (3) to five (5) years for employees and one (1) 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. RSUs are measured based on the fair market value of the underlying common stock on the grant date.

The restricted stock activity for our years ended September 30, 2022, 2021, and 2020 is summarized as follows:

				Weighted-
				Average
	Number			Grant Date
2018 Plan	of Shares			Fair Value
Restricted shares unvested at September 30, 2019		847,974		$	9.56
Granted		910,297			3.97
Vested		(555,473	)		9.21
Cancelled		(7,250	)		7.89
Restricted shares unvested at September 30, 2020		1,195,548		$	5.47
Granted		346,123			9.53
Vested		(492,465	)		6.89
Cancelled		(43,000	)		4.57
Restricted shares unvested at September 30, 2021		1,006,206			6.22
Granted		718,959			3.20
Vested		(455,303	)		6.13
Cancelled		(97,369	)		2.97
Restricted shares unvested at September 30, 2022		1,172,493		$	4.43

As of September 30, 2022, there was $4.4 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 1.7 years.

Compensation cost for share-based awards are recognized on a straight-line basis over the vesting period. The Company recognizes forfeitures of share-based awards as they occur. Share-based compensation expense for the years ended September 30, 2022, 2021, and 2020 was $2.8 million, $3.1 million, and $4.4 million, respectively. Share-based compensation expense is recorded in general and administrative expenses in the consolidated statements of operations and comprehensive (loss) income.

The Company repurchased 147,108 shares of its common stock for $0.5 million to cover the income tax obligation on vested employee equity awards during the fiscal year ended September 30, 2022. The Company repurchased 155,174 shares of its common stock for $1.5 million to cover the income tax obligation on vested employee equity awards and warrant conversions during the fiscal year ended September 30, 2021. During the fiscal year ended September 30, 2020, the Company repurchased 142,439 shares of its common stock for $0.6 million to cover the income tax obligation on vested employee equity awards.

Employee Stock Purchase Plan

12 Months Ended

Sep. 30, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Employee Stock Purchase Plan

15.	Employee Stock Purchase Plan

2019 ESPP

The Mesa Air Group, Inc. 2019 Employee Stock Purchase Plan (the "2019 ESPP") is a nonqualified plan that provides eligible employees of Mesa Air Group, Inc. with an opportunity to purchase Mesa Air Group, Inc. ordinary shares through payroll deductions. Under the 2019 ESPP, eligible employees may elect to contribute 1% to 15% of their eligible compensation during each semi-annual offering period to purchase Mesa Air Group, Inc. ordinary shares at a 10% discount.

A maximum of 500,000 Mesa Air Group, Inc. ordinary shares may be issued under the 2019 ESPP. As of September 30, 2022, eligible employees purchased and the Company issued an aggregate of 304,137 Mesa Air Group, Inc. ordinary shares under the 2019 ESPP, 109,943 of which were purchased and issued during the current fiscal year.

Leases

12 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

16.

Leases

At September 30, 2022, the Company leased 16 aircraft, airport facilities, office space, and other property and equipment under non-cancelable operating leases. The operating leases require the Company to pay 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. The Company expects 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 $43.4 million, $44.6 million, and $51.4 million for the year ended September 30, 2022, 2021, and 2020, respectively.

At September 30, 2022, the Company leased 2 aircraft and 3 spare engines under non-cancelable finance leases. Basic rent on finance leases is paid monthly and at the end of the lease term. At the end of the lease term, the Company has the option to purchase the aircraft and engines for most of the finance leases. These finance leases are reflected as finance lease obligations of $18.0 million on our consolidated balance sheet as of September 30, 2022.

The components of our operating and finance lease costs were as follows (in thousands):

	Year Ended September 30,
	2022		2021
Operating lease costs	$	37,637	$	37,929
Variable and short-term lease costs		5,783		6,708
Interest expense on finance lease liabilities		547		576
Amortization expense of finance lease assets		2,705		2,130
Total lease costs	$	46,672	$	47,343

As of September 30, 2022, the Company’s operating lease right-of-use assets were $43.1 million, the Company’s current maturities of operating lease liabilities were $17.2 million, and the Company’s noncurrent operating lease liabilities were $16.7 million. As of September 30, 2022, the Company’s current portion of finance lease liabilities were $2.7 million, and the Company’s noncurrent finance lease liabilities were $15.3 million.

The Company’s operating lease payments included in operating cash flows for the year ended September 30, 2022 and 2021 were $36.3 million and $47.6 million, respectively. The Company’s finance lease interest payments included in operating cash flows for the year ended September 30, 2022 and 2021 were $0.3 million and $0.6 million, respectively. The Company’s finance lease principal payments included in financing cash flows for the year ended September 30, 2022 and 2021 were $2.5 million and $2.3 million, respectively.

Due to the impacts of the pilot shortage and the pilot wage increase, we evaluated all asset groups during the quarter ended September 30, 2022 and determined that only the asset group associated with the CRJ-900 fleet operating under the American CPA, discussed in Note 8, required impairment. This resulted in an impairment loss of $15.2 million to the leased aircraft within the asset group for the CRJ-900 fleet operating for the year ended September 30, 2022, which was recorded in asset impairment on our consolidated statements of operations and comprehensive (loss) income. Additionally, we recorded a $0.2 million of impairment on certain operating lease ROU assets associated with the abandonment of a leased facility during the year ended September 30, 2022. The Company did not record any impairment losses related to its operating lease right-of-use assets during the years ended September 30, 2021 and 2020.

The table below presents the weighted average remaining terms and discount rates for our operating and finance leases as of September 30, 2022:

As of September 30, 2022
Finance leases:
Weighted average remaining lease term	7.4 years
Weighted average discount rate		6.1	%
Operating leases:
Weighted average remaining lease term	3.8 years
Weighted average discount rate		4.5	%

The following table summarizes future minimum rental payments, primarily related to leased aircraft, required under operating and finance leases that had initial or remaining non-cancelable lease terms as of September 30, 2022 (in thousands):

Periods Ending September 30,	Operating Leases			Finance Leases
2023	$	18,356		$	2,730
2024		10,172			7,054
2025		1,564			1,800
2026		1,046			1,800
2027		1,029			1,800
Thereafter		5,054			6,600
Total lease payments		37,221			21,784
Less: imputed interest		(3,256	)		(3,746	)
Amounts recorded in the consolidated balance sheet	$	33,965		$	18,038

RASPRO Lease Facility. On September 23, 2005, Mesa Airlines, as lessee, entered into the RASPRO Lease Facility, with RASPRO as lessor, for 15 of our CRJ-900 aircraft. The obligations under the RASPRO Lease Facility are guaranteed by us, and basic rent is paid quarterly on each aircraft. On each of March 10, 2014, June 5, 2014, and December 8, 2017, the RASPRO Lease Facility was amended to defer certain payments of basic rent (the "Deferred Amounts"). Until the principal of and accrued interest on the Deferred Amounts are paid in full: (i) we and Mesa Airlines are prohibited from paying any dividends to holders of our common stock, (ii) we are prohibited from repurchasing any of our warrants or other equity interests, (iii) Mesa Airlines must maintain a minimum of $35.0 million of cash, cash equivalents and availability under lines of credit, (iv) Mesa Airlines must provide RASPRO with periodic monthly, quarterly and annual reports containing certain financial information and forecasted engine repair costs and (v) we must maintain a minimum debt-to-assets ratio.

In June 2020, the Company amended its RASPRO aircraft lease agreement to defer a $4.0 million lease payment otherwise due in June 2020. Per the amended agreement dated June 5, 2020, the Company is required to pay this amount over the period of September 2021 through March 2024. The Company made the accounting election available for COVID-19 related concessions provided by a lessor and accordingly, this was not a lease modification and required no changes to current accounting treatment. As of September 30, 2022, we were in compliance with the covenants in the RASPRO Lease Facility.

Commitments and Contingencies

12 Months Ended

Sep. 30, 2022

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

17.	Commitments and Contingencies

Litigation

We are involved in various legal proceedings (including, but not limited to, insured claims) and FAA civil action proceedings which we consider routine to our business activities on an ongoing basis. If we believe that a loss arising from such matters is probable and can be reasonably estimated, we accrue the estimated liability in our consolidated financial statements. If only a range of estimated losses can be determined, we accrue an amount within the range that, in our judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. For those proceedings in which an unfavorable outcome is reasonably possible but not probable, we have disclosed an estimate of the reasonably possible loss or range of losses or we have concluded that an estimate of the reasonably possible loss or range of losses arising directly from the proceeding (i.e., monetary damages or amounts paid in judgment or settlement) is not material. If we cannot estimate the probable or reasonably possible loss or range of losses arising from a proceeding, we have disclosed that fact. In assessing the materiality of a proceeding, we evaluate, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g., injunctive relief) that may require us to change our business practices in a manner that could have a material adverse impact on our business.

With respect to the matters disclosed in Item 3: “Legal Proceedings”, we believed that the ultimate outcomes of the two (2) putative class action lawsuits and such other routine legal matters are not likely to have a material adverse effect on our financial position, liquidity, or results of operations. However, legal and regulatory proceedings are inherently unpredictable and subject to significant uncertainties. If one or more matters were resolved against us in a reporting period for amounts in excess of management’s expectations, the impact on our operating results or financial condition for that reporting period could be material.

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. The Company agreed to purchase and take delivery of 10 new CF34-8C5 or CF34-8E5 engines with delivery dates starting from July 1, 2021 through November 1,2022. During the quarter ended March 31, 2021, a $7.0 million non-refundable purchase deposit was made for the first five (5) engines to be delivered in calendar year 2021. The Company has options to purchase an additional 10 similar engines beyond 2022. The total purchase commitment related to these 10 engines is approximately $52.2 million. As of September 30, 2022, we have purchased nine (9) 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 2023.

If the Company fails to accept delivery of the spare engines when duly tendered, the Company may be assessed a minimum cancellation charge based on the engine price determined as of the date of scheduled engine delivery to the Company.

Electric Aircraft Forward Purchase Commitments

As described in Note 8, in February 2021, the Company entered into a forward purchase contract with Archer for a number of electrically-powered vertical takeoff and landing aircraft (“eVTOL aircraft”). The aggregate base commitment for the eVTOL aircraft is $200.0 million, with an option to purchase additional aircraft. The Company’s 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 8, in July 2021, the Company 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. The Company’s 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 contracts for goods and services that require us to pay a penalty, acquire inventory specific to us or purchase contract-specific equipment, as defined by each respective contract, if we terminate the contract without cause prior to its expiration date. Because these obligations are contingent on our termination of the contract without cause prior to its expiration date, no obligation would exist unless such a termination occurs.

Subsequent Events

12 Months Ended

Sep. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

18.	Subsequent Events

Amendment No. 11 to American CPA

In December 2022, we entered into Amendment No. 11 (the “AA Amendment”) to the American CPA. The AA Amendment provides for the termination and wind-down of the American CPA by April 3, 2023 (the “Wind-down Period”), at which time all Covered Aircraft (as defined in the American CPA) will be removed from the American CPA. We will begin to place aircraft operated under the American CPA with in March 2023. As of the date if this Annual Report on Form 10-K, we operate 42 CRJ-900 aircraft under the American CPA, including two (2) operational spares. The American CPA was previously set to expire by its terms on December 31, 2025.

Under the terms of the AA Amendment, during the Wind-down Period (i) we will continue to receive a fixed minimum monthly amount per aircraft covered by the American CPA, plus additional amounts based on the number flights and block hours actually flown during each month, subject to adjustment based on the Company’s controllable completion rate and certain other factors, and (ii) American has agreed not to exercise certain any termination or withdrawal rights under the American CPA if we fail to meet certain operational performance targets for the three (3) consecutive month period ending January 31, 2023.

Provided we comply with the terms of the American CPA during the Wind-down Period and no Material Breach (as defined in the American CPA) has occurred, American has also agreed to waive Mesa’s failure to meet certain past operational performance targets and other requirements, which triggered termination and withdrawal rights for American pursuant to the terms of American CPA.

The AA Amendment provides for liquidated damages (the “Liquidated Damages Claim”) payable to American in the event of a Material Breach (as defined in the American CPA) of the American CPA or a repudiation by us of our obligations under the American CPA.

So long as we have not caused any Material Breaches during the Wind-Down Period, then immediately upon the expiration thereof, the parties have agreed to execute a written mutual release of claims and acknowledgment that no Material Breaches have occurred under the American CPA (including, without limitation, any Liquidated Damages Claim).

Amendment and Restatement of the United CPA

On December 27, 2022, we entered into the Third Amended and Restated Capacity Purchase Agreement with United (as amended and restated, the “Amended and Restated United CPA”), which amends and restates the Second Amended and Restated Capacity Purchase Agreement, dated as of November 4, 2020, with United (as theretofore amended). The Amended and Restated United CPA provides, among other things, for the following amended terms:

▪

The addition of up to 38 CRJ-900 aircraft to be operated by the Company on behalf of United under the Amended and Restated United CPA, dependent on the number of E-175 aircraft the Company is operating;

▪

An increase in rates to cover the Company’s pilot pay increases instituted in September 2022, effective through September 2025;

▪

United to be responsible for all costs associated with converting the CRJ-900 aircraft for operation in United’s network;

▪

Terms providing that United may remove from the scope of the United CPA the CRJ-900, subject to certain notice and other requirements;

▪

United’s existing utilization waiver for the Company’s operation of E175LL Covered Aircraft (as defined in the United CPA) to be extended to December 31, 2023;

▪

The extension of existing monthly operational performance incentives; and

▪

An agreement by the Company to not enter into new regional air carrier service agreements, excluding the Company’s existing agreement with DHL.

In consideration for entering into the Amended and Restated United CPA and providing the revolving line of credit (discussed below), the Company has agreed to (i) grant United the right to designate one individual (the “United Designee”) to be appointed to the Company’s board of directors, and (ii) issue to United shares of our common stock equal to ten percent (10.0%) of the Company’s issued and outstanding shares on a fully diluted basis as of the date of such issuance (the “United Shares”). United’s board designee rights will terminate at such time as United’s equity ownership in the Company falls below five percent (5.0%).

The United Shares will be issued pursuant to an equity purchase agreement, which will contain customary representations, warranties, covenants and indemnities for such a transaction, including pre-emptive rights relating to the issuance of any equity securities by the Company. The Company will also enter into a definitive registration rights agreement with United, granting United customary demand registration rights in respect of publicly registered offerings of the Company, subject to usual and customary exceptions and limitations.

Revolving Line of Credit

In connection with the above-referenced Amendment to the United CPA, United has agreed to purchase and assume, pursuant to an Assignment and Assumption Agreement (the “Assignment”), all of CIT Bank’s rights and obligations under Mesa’s and Mesa Air Group Airline Inventory Management, L.L.C.’s existing revolving credit facility with CIT, which is guaranteed by the Company (the “Existing Agreement”). In connection with the effectiveness of the Assignment, the Existing Agreement will be amended (as so amended, the “Amended Credit Facility”) to, among other things, (i) extend the Revolving Loan Maturity Date (as defined in the Amended Credit Facility) from the earlier to occur of November 30, 2028 or the date of the termination of the United CPA; (ii) provide for a revolving loan of $10.0 million plus certain other fees (the “Effective Date Bridge Loan”), which will be due and payable on January 31, 2024, subject to certain mandatory prepayment requirements; (iii) provide for Revolving Commitments (as defined in the Amended Credit Facility) equal to $30.7 million (inclusive of the amount outstanding under such facility as of the effective date of the Assignment) plus the original principal amount of the Effective Date Bridge Loan; (iv) amortization of the obligations outstanding under the Existing Agreement commencing the last business day of each fiscal quarter commencing the fiscal quarter ending March 31, 2025; (v) a covenant capping Restricted Payments (as defined in the Amended Credit Facility) at $5.0 million per fiscal year, a consolidated interest and rental coverage ratio of 1.00 to 1.00 covenant, measured at the end of each fiscal quarter, and a Liquidity (as defined in the Amended Credit Facility) requirement of not less than $15.0 million at close of any business day. Amounts borrowed under this facility bear interest at 3.50% for Base Rate Loans and 4.50% per annum for Term SOFR Loans (as each term is defined in the Amended Credit Facility. Amounts borrowed under the Amended Credit Facility will be secured by a collateral pool consisting of a combination of expendable parts, rotable parts and engines and a pledge of the Company’s stock in certain aviation companies.

Amendment to the Loan and Guarantee Agreement with the United States Department of the Treasury

On December 22, 2022, Mesa Air Group, Inc. (the “Company”) and its wholly owned subsidiaries, Mesa Airlines, Inc. (“Mesa”) and Mesa Air Group Airline Inventory Management, L.L.C., entered into a Modification and Waiver Agreement (the “Modification Agreement”) with the United States Department of the Treasury (the “Treasury”) and The Bank of New York Mellon, as Administrative Agent and Collateral Agent (the “Bank of New York”). The Modification Agreement provides for the amendment of the Loan and Guarantee Agreement, dated as of October 30, 2020 (as theretofore amended, the “Loan Agreement”), among Mesa, as Borrower, the Company, as a Guarantor, the Guarantors party thereto from time to time, the Treasury, and the Bank of New York. The amended terms include, among others, the following: (i) a modification of the Collateral Coverage Ratio covenant with respect to amounts on deposit in the Eligible Receivables Account and the Collateral Coverage Ratio covenant, effective through the maturity date of the Loan Agreement; and (ii) a waiver of the Collateral Coverage Ratio covenant requirement with respect to the release of liens on Collateral. The Modification Agreement also imposes certain obligations on the Company in connection with its sale of Collateral subject to the Loan Agreement and certain lien release obligations on the Treasury with respect to such sales. Capitalized terms used herein but not otherwise defined have the meanings assigned to such terms in the Loan Agreement.

Amendment to Credit Agreement with Economic Development Corporation of Canada

On December 15, 2022, the Company entered into an agreement to renegotiate an existing credit agreement with the Economic Development Corporation of Canada (“EDC”) and Mitsubishi Heavy Industries RJ Aviation, Inc. (“MHIRJ”) that would, among other things, (i) reduce principal amortization on seven (7) CRJ-900 certain airframes financed with EDC for 24 months, with such deferred sum repaid at maturity in June 2027, subject to certain engine overhaul investment requirements in year two (2) to be agreed upon, and (ii) forgive $700,000 of subordinated debt payable to MHIRJ on each of the seven (7) CRJ-900 aircraft if repaid prior to December 31, 2023.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation

Reclassifications of certain immaterial prior period amounts have been made to conform to the current period presentation.

Use of Estimates

Segment Reporting

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Restricted Cash

Expendable Parts and Supplies

Property and Equipment

Estimated useful lives of the various classifications of property and equipment are as follows:

Property and Equipment		Estimated Useful Life
Buildings		30 years
Aircraft		25 years from the manufacture date
Flight equipment		7-20 years
Equipment		5-9 years
Furniture and fixtures		3-5 years
Vehicles		5 years
Rotable spare parts		Life of the aircraft or term of the lease, whichever is less
Leasehold improvements		Life of the aircraft or term of the lease, whichever is less

Assets Held For Sale

Assets Held for Sale

Fair Value Measurements

•

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.

Debt Financing Costs

Unutilized Manufacturer Credits

Intangible Assets

Other Assets

Other noncurrent assets primarily consist of the non-current portion of lease incentives related to aircraft which Mesa leases to third parties and investments in equity securities.

Income Taxes

Other Noncurrent Liabilities

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Summary of Estimated Useful Lives of Various Classifications of Property and Equipment

Estimated useful lives of the various classifications of property and equipment are as follows:

Property and Equipment		Estimated Useful Life
Buildings		30 years
Aircraft		25 years from the manufacture date
Flight equipment		7-20 years
Equipment		5-9 years
Furniture and fixtures		3-5 years
Vehicles		5 years
Rotable spare parts		Life of the aircraft or term of the lease, whichever is less
Leasehold improvements		Life of the aircraft or term of the lease, whichever is less

Contract Revenue and Pass-through and Other Revenue (Tables)

12 Months Ended

Sep. 30, 2022

Revenue From Contract With Customer [Abstract]

Schedule of Deferred Revenue Remaining Performance Obligations

Periods Ending
September 30,	Total Revenue
2023	$	385
2024		2,553
2025		10,065
2026		4,792
2027		3,679
Thereafter		2,593

Total

24,067

Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Information About Intangible Assets

Information about the intangible assets of the Company at September 30, 2022 and 2021, is as follows (in thousands):

	September 30,			September 30,
	2022			2021
Customer relationship	$	43,800		$	43,800
Accumulated amortization		(38,029	)		(37,008	)
Impairment		(1,929	)		-
Net carrying value	$	3,842		$	6,792

Balance Sheet Information (Tables)

12 Months Ended

Sep. 30, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Summary of Certain Significant Amounts Included in Consolidated Balance Sheets

Certain significant amounts included in the Company's consolidated balance sheets as of September 30, 2022 and 2021, consisted of the following (in thousands):

	September 30,			September 30,
	2022			2021
Expendable parts and supplies, net:
Expendable parts and supplies	$	31,913		$	29,297
Less: obsolescence and other		(5,198	)		(4,830	)
	$	26,715		$	24,467
Prepaid expenses and other current assets:
Prepaid aviation insurance	$	2,618		$	2,171
Prepaid vendors		1,310		893
Prepaid other insurance		1,268			1,323
Lease Incentives		352			1,445
Other		1,068			1,053
	$	6,616		$	6,885
Property and equipment, net:
Aircraft and other flight equipment substantially pledged	$	1,260,143		$	1,611,544
Other equipment		5,577			4,934
Leasehold improvements		2,776			2,776
Vehicles		992			1,184
Building		777			699
Furniture and fixtures		298			300
Total property and equipment		1,270,563			1,621,437
Less: accumulated depreciation		(405,309	)		(469,546	)
	$	865,254		$	1,151,891
Other assets:
Investments in equity securities	$	15,178		$	25,149
Lease incentives		1,097			10,957
Other		15			15
	$	16,290		$	36,121
Other accrued expenses:
Accrued property taxes	$	5,866		$	8,783
Accrued interest		2,882			2,565
Accrued vacation		4,746			5,936
Accrued lodging		3,795			3,380
Accrued maintenance		1,453			1,580
Accrued liability on government payroll program		2,967			2,775
Accrued simulator costs		1,045		457
Accrued employee benefits		1,679		981
Accrued fleet operating expense		1,606		786
Short term lease incentive liability	97				3,318
Other		2,864			3,096
	$	29,000		$	33,657
Other noncurrent liabilities:
Warrant liabilities	$	25,225		$	21,964
Lease incentive obligations		1,050			6,358
Long term employee benefits		1,123			1,447
Long term liability on government payroll program	—				2,775
Other		1,821			2,047
	$	29,219		$	34,591

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Carrying Value and Estimated Fair Value of Long-term Debt, Including Current Maturities

The carrying value and estimated fair value of the Company's long-term debt, including current maturities, were as follows (in millions):

	September 30, 2022				September 30, 2021
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Long-term debt, including current maturities⁽¹⁾	$	615.3	$	541.7	$	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, and Other Borrowings (Tables)

12 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Long-term debt as of September 30, 2022 and 2021, consisted of the following (in thousands):

		September 30,				September 30,
		2022				2021
Senior and subordinated notes payable to secured parties, due in monthly installments, interest based on LIBOR plus interest spread at 2.71% through 2027, collateralized by the underlying aircraft	$		73,850		$		86,551
Notes payable to secured parties, due in semi-annual installments, interest based on LIBOR plus interest spread at 4.75% to 6.25% through 2028, collateralized by the underlying aircraft			131,010				152,100
Notes payable to secured parties, due in quarterly installments, interest based on LIBOR plus interest at spread 2.20% to 2.32% for senior note & 4.50% for subordinated note through 2028, collateralized by the underlying aircraft			106,865				122,762
Other obligations due to financial institution, monthly and/or quarterly interest due from 2022 through 2031, collateralized by the underlying equipment			18,038				4,581
Notes payable to financial institution, due in monthly installments, interest based on LIBOR plus interest spread at 3.10% through 2024, collateralized by the underlying equipment			26,758				45,559
Notes payable to financial institution, due in monthly installments, plus interest spread at 5.00% through 2022, collateralized by the underlying aircraft			-				30,625
Notes payable to financial institution, due in monthly installments, plus interest spread at 5.00% through 2023, secured by flight equipment			2,000				4,000
Revolving credit facility, monthly interest based on LIBOR plus interest spread at 3.75% through 2022			15,630				22,930
Notes payable to financial institution, quarterly interest based on LIBOR plus interest spread at 3.50% through 2027			204,947				201,227
Notes payable to financial institution, due in monthly installments, interest based on LIBOR plus interest spread at 4.24%, through 2027, collateralized by the underlying equipment			36,212				-
Gross long-term debt, including current maturities	$		615,310		$		670,335
Less unamortized debt issuance costs			(8,303	)			(9,295	)
Less notes payable warrants			(7,272	)			(9,630	)
Net long-term debt, including current maturities	$		599,735		$		651,410
Less current portion, net of unamortized debt issuance costs			(97,218	)			(111,710	)
Net long-term debt	$		502,517		$		539,700

Schedule of Principal Maturities of Long-term Debt

Principal maturities of long-term debt as of September 30, 2022, and for each of the next five (5) years are as follows (in thousands):

	Total Principal
Periods Ending September 30,	Amount
2023	$	99,102
2024		73,374
2025		64,512
2026		271,824
2027		63,958
Thereafter		42,540
	$	615,310

Earnings Per Share (Tables)

12 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Calculations of Net (Loss) Income Per Common Share

Calculations of net (loss) income per common share were as follows (in thousands, except per share data):

	Year Ended September 30,
	2022			2021		2020
Net (loss) income	$	(182,678	)	$	16,588	$	27,464
Basic weighted average common shares outstanding		36,133			35,713		35,237
Add: Incremental shares for:
Dilutive effect of warrants		—			2,543		—
Dilutive effect of restricted stock		—			587		71
Diluted weighted average common shares outstanding		36,133			38,843		35,308
Net (loss) income per common share
Basic	$	(5.06	)	$	0.46	$	0.78
Diluted	$	(5.06	)	$	0.43	$	0.78

Number of Weighted-Average Potentially Dilutive Shares Excluded from Calculation of Diluted Net (Loss) Income Per Share

	Year Ended September 30,
	2022		2021		2020
Warrants		758		—		—
Restricted stock		106		—		—
		864		—		—

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

The provision for income taxes consists of the following:

	Years Ended September 30,
	2022			2021			2020
	(in thousands)
Current
Federal	$	—		$	(39	)	$	—
State		231			202			297
	$	231		$	163		$	297
Deferred
Federal		(47,879	)		4,494			8,404
State		(4,342	)		1,171			830
	$	(52,221	)	$	5,665		$	9,234
(Benefit) provision for income taxes	$	(51,990	)	$	5,828		$	9,531

Schedule of Reconciliation between Effective Tax Rate Income from Continuing Operations and Statutory Rate

The reconciliation between the effective tax rate on income from continuing operations and the statutory tax rate is as follows:

	Years Ended September 30,
	2022			2021			2020
	(in thousands)
Income tax (benefit) provision at federal statutory rate	$	(49,280	)	$	4,707		$	7,769
(Reduction) increase in income taxes resulting from:
State taxes, net of federal tax benefit		(3,953	)		669			968
Nondeductible stock compensation expenses		251			(241	)		524
Permanent items		206			292			314
Change in valuation allowances		(22	)		(140	)		1,173
162(m) limitation		11			12			14
Impact of changing rates on deferred tax assets		(247	)		509			(2,313	)
Expired tax attributes		964			152			633
Other		80			(132	)		449
Income tax (benefit) provision	$	(51,990	)	$	5,828		$	9,531

Schedule of Components of Deferred Taxes

The components of the Company's deferred taxes as of September 30, 2022 and 2021 are as follows:

	Years Ended September 30,
	2022			2021
	(in thousands)
Net operating loss carryforwards	$	131,897		$	121,604
Deferred credits		703			899
Other accrued expenses		1,769			2,682
Prepaids and other		1,175			1,969
Warrant liabilities		5,725			5,018
State alternative minimum tax		1			1
Other reserves and estimated losses		873			729
Operating lease liabilities		8,012			15,226
Deferred revenue		5,506			1,439
Gross deferred tax assets	$	155,661		$	149,567
Less: valuation allowance		(2,901	)		(2,922	)
Total net deferred tax assets	$	152,760		$	146,645

Intangible assets		(877	)		(1,552	)
Operating lease right-of-use assets		(2,055	)		(11,467	)
Property and equipment		(166,586	)		(200,105	)
Unrealized gain on equity investments		(961	)		(3,461	)
Total deferred tax liabilities	$	(170,479	)	$	(216,585	)
Net deferred tax liability	$	(17,719	)	$	(69,940	)

Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:

	Years Ended September 30,
	2022		2021		2020
	(in thousands)
Unrecognized tax benefits — October 1	$	4,866	$	4,866	$	4,688
Gross decreases — tax positions in prior period		—		—		—
Gross increases — tax positions in prior period		—		—		178
Unrecognized tax benefits — September 30	$	4,866	$	4,866	$	4,866

Share-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Schedule of Restricted Stock Activity

The restricted stock activity for our years ended September 30, 2022, 2021, and 2020 is summarized as follows:

				Weighted-
				Average
	Number			Grant Date
2018 Plan	of Shares			Fair Value
Restricted shares unvested at September 30, 2019		847,974		$	9.56
Granted		910,297			3.97
Vested		(555,473	)		9.21
Cancelled		(7,250	)		7.89
Restricted shares unvested at September 30, 2020		1,195,548		$	5.47
Granted		346,123			9.53
Vested		(492,465	)		6.89
Cancelled		(43,000	)		4.57
Restricted shares unvested at September 30, 2021		1,006,206			6.22
Granted		718,959			3.20
Vested		(455,303	)		6.13
Cancelled		(97,369	)		2.97
Restricted shares unvested at September 30, 2022		1,172,493		$	4.43

Leases (Tables)

12 Months Ended

Sep. 30, 2022

Leases [Abstract]

Components of Operating and Financing Lease Costs

The components of our operating and finance lease costs were as follows (in thousands):

	Year Ended September 30,
	2022		2021
Operating lease costs	$	37,637	$	37,929
Variable and short-term lease costs		5,783		6,708
Interest expense on finance lease liabilities		547		576
Amortization expense of finance lease assets		2,705		2,130
Total lease costs	$	46,672	$	47,343

Schedule of Weighted Average Remaining Terms and Discount Rates for Operating and Financing Leases

The table below presents the weighted average remaining terms and discount rates for our operating and finance leases as of September 30, 2022:

As of September 30, 2022
Finance leases:
Weighted average remaining lease term	7.4 years
Weighted average discount rate		6.1	%
Operating leases:
Weighted average remaining lease term	3.8 years
Weighted average discount rate		4.5	%

Schedule of Future Minimum Rental Payments Under Operating and Finance Leases of Initial or Remaining Non-cancelable Lease Terms

Periods Ending September 30,	Operating Leases			Finance Leases
2023	$	18,356		$	2,730
2024		10,172			7,054
2025		1,564			1,800
2026		1,046			1,800
2027		1,029			1,800
Thereafter		5,054			6,600
Total lease payments		37,221			21,784
Less: imputed interest		(3,256	)		(3,746	)
Amounts recorded in the consolidated balance sheet	$	33,965		$	18,038

Organization and Operations - Additional Information (Detail)			1 Months Ended		2 Months Ended			3 Months Ended	12 Months Ended			24 Months Ended
	Jan. 01, 2022 USD ($) Air-craft	Dec. 20, 2019 Air-craft	Aug. 31, 2022 Air-craft	Jun. 02, 2021 Air-craft	Aug. 17, 2021 Air-craft	May 05, 2021 Air-craft	Mar. 03, 2021 Air-craft	Sep. 30, 2022 USD ($) Daily_Departure State Air-craft	Sep. 30, 2022 USD ($) Daily_Departure State Air-craft City Employee Engine FlightHour	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2024 USD ($) Air-craft
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of states in which entity operates \| State								39	39
Number of aircrafts operated									158
Number of cities in which entity operates \| City									107
Number of daily departures \| Daily_Departure								306	306
Number of employees \| Employee									2,454
Net cash provided by operating activities \| $									$ 13,362,000	$ 132,871,000	$ 174,662,000
Net loss \| $									(182,678,000)	$ 16,588,000	$ 27,464,000
Impairment charge \| $									171,824,000
Proceeds from sale of property \| $									$ 8,200,000
Number of aircrafts listed for sale \| Engine									30
Gross proceeds from sale of asset \| $									$ 80,000,000
Proceeds from sale of asset \| $									26,400,000
Line of credit \| $								$ 25,500,000	25,500,000
Reduction in loan amount \| $									5,000,000
Upfront provided for flight time out-of-pocket expense \| $									0
Short-term debt \| $								$ 97,200,000	$ 97,200,000
Number of aircrafts withdrawable on conditions								1	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
American Capacity Purchase Agreement [Member] \| CRJ-900 Aircraft [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of aircrafts operated									42
Maximum [Member] \| Mesa Pilot Development Program [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Flight hours required to fly commercial aircraft \| FlightHour									1,500
RASPRO Aircraft Lease Agreement [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of aircraft lease terminated									15
Buyout pricing \| $									$ 25,000,000
Scenario Forecast [Member] \| Export Development Bank of Canada Agreement [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of aircrafts operated												7
Maximum liquidity provided \| $												$ 14,000,000
CRJ-700 Aircraft [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of aircrafts listed for sale									18
Number of aircraft sold									10
Number of aircraft to be sold	8
Proceeds from sale of property \| $	$ 8,000,000								$ 36,800,000
CRJ-900 Aircraft [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of aircrafts listed for sale									11
CRJ-900 Aircraft [Member] \| American Capacity Purchase Agreement [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of aircrafts expected to operate				3	5	5	3
CRJ-200 Aircraft [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of aircrafts listed for sale									1
Pipistrel Alpha Trainer 2 Aircraft [Member] \| Mesa Pilot Development Program [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of aircrafts purchased									29
Flight costs per hour \| $									$ 25
United Express Contract [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Minimum qualification term for flying aircrafts									2 years
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
E-175 Aircraft [Member] \| United Capacity Purchase Agreement [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of aircrafts operated									60
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 day’s written notice
Aircraft option to extend agreement description									DHL has the option to extend the agreement with respect to one (1) or more aircraft for a period of one (1) year with 90 days’ advance written notice
Captains [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Increased overall hourly pay due to pilot shortage and attrition								11800.00%
New Hire First Officers [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Increased overall hourly pay due to pilot shortage and attrition								17200.00%
United [Member] \| CRJ-700 Aircraft [Member] \| United Capacity Purchase Agreement [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of aircrafts operated									20
Number of aircrafts listed for sale			18
Number of aircraft sold									10
Number of aircraft lease terminated			18
Aircraft lease term									9 years
Number of aircraft leased									20
United [Member] \| E175LL Aircraft [Member] \| United Capacity Purchase Agreement [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 10 year anniversary of the in-service date, certain accelerated margin payments.
United [Member] \| E-175 Aircraft [Member] \| United Capacity Purchase Agreement [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of aircrafts operated									42
Lease expiration year									2028
Number of aircrafts owned									18
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
United [Member] \| E-175 Aircraft [Member] \| Maximum [Member] \| United Capacity Purchase Agreement [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Lease expiration year									2028
United [Member] \| E-175 Aircraft [Member] \| Minimum [Member] \| United Capacity Purchase Agreement [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Lease expiration year									2024
Impact of Pilot Shortage [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Net cash provided by operating activities \| $									$ 13,400,000
Net loss \| $									(182,700,000)
Impairment charge \| $									$ 171,800,000

Summary of Significant Accounting Policies - Additional Information (Detail)	3 Months Ended	12 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($) Segment	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of operating segments \| Segment		1
Number of reportable segments \| Segment		1
Outstanding letters of credit to be collateralized by amounts on deposit, classified as restricted cash	$ 3,300,000	$ 3,300,000	$ 3,400,000
Allowance for obsolete expendable parts and supplies		634,000	380,000
Asset impairment		171,824,000
Lease revenue		$ 158,400,000	$ 170,200,000	$ 208,900,000
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]		Contract revenue	Contract revenue	Contract revenue
Current and non-current deferred credit balances	3,900,000	$ 3,900,000	$ 4,800,000
Recognized deferred credits within contract revenue		900,000	2,400,000	$ 3,700,000
Contract assets balances	0	0	0
Contract cost amortization		0	2,000,000.0	1,900,000
Amortization of heavy maintenance and major overhaul costs charged to depreciation and amortization expense		1,900,000	400,000	0
Deferred heavy maintenance balance, net of accumulated amortization	9,700,000	9,700,000	3,500,000
Engine overhaul expense		23,600,000	31,400,000	40,500,000
Engine overhaul pass-through expense		21,700,000	16,800,000	7,000,000.0
Airframe check expense		22,100,000	51,100,000	23,500,000
Airframe check pass-through expense		3,200,000	20,500,000	7,200,000
Impairment loss		200,000	0	0
CRJ-900 Aircraft [Member]
Summary Of Significant Accounting Policies [Line Items]
Impairment loss		15,200,000
Customer Relationships [Member]
Summary Of Significant Accounting Policies [Line Items]
Impairment loss on intangible assets		1,900,000	0	0
Customer Relationships [Member] \| CRJ-900 Aircraft [Member]
Summary Of Significant Accounting Policies [Line Items]
Impairment loss on intangible assets	$ 1,900,000		0	0
Property and Equipment [Member]
Summary Of Significant Accounting Policies [Line Items]
Asset impairment		109,700,000
Other Long-lived Assets [Member]
Summary Of Significant Accounting Policies [Line Items]
Asset impairment			0
ROU Assets [Member]
Summary Of Significant Accounting Policies [Line Items]
Asset impairment				$ 0
Aircraft [Member]
Summary Of Significant Accounting Policies [Line Items]
Allowance for obsolete expendable parts and supplies		$ 3,800,000	$ 3,200,000
Percentage leased		11.00%
Aircraft and Rotable Spare Parts [Member]
Summary Of Significant Accounting Policies [Line Items]
Property and equipment, salvage value, percentage	20.00%	20.00%
Letter of Credit [Member]
Summary Of Significant Accounting Policies [Line Items]
Letter of credit facility, amount		$ 6,000,000.0

Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Various Classifications of Property and Equipment (Detail)	12 Months Ended
	Sep. 30, 2022
Buildings [Member]
Property Plant And Equipment [Line Items]
Property and Equipment, Estimated Useful Life	30 years
Aircraft [Member]
Property Plant And Equipment [Line Items]
Property and Equipment, Estimated Useful Life	25 years from the manufacture date
Flight Equipment [Member] \| Minimum [Member]
Property Plant And Equipment [Line Items]
Property and Equipment, Estimated Useful Life	7 years
Flight Equipment [Member] \| Maximum [Member]
Property Plant And Equipment [Line Items]
Property and Equipment, Estimated Useful Life	20 years
Equipment [Member] \| Minimum [Member]
Property Plant And Equipment [Line Items]
Property and Equipment, Estimated Useful Life	5 years
Equipment [Member] \| Maximum [Member]
Property Plant And Equipment [Line Items]
Property and Equipment, Estimated Useful Life	9 years
Furniture and Fixtures [Member] \| Minimum [Member]
Property Plant And Equipment [Line Items]
Property and Equipment, Estimated Useful Life	3 years
Furniture and Fixtures [Member] \| Maximum [Member]
Property Plant And Equipment [Line Items]
Property and Equipment, Estimated Useful Life	5 years
Vehicles [Member]
Property Plant And Equipment [Line Items]
Property and Equipment, Estimated Useful Life	5 years
Rotable Spare Parts [Member]
Property Plant And Equipment [Line Items]
Property and Equipment, Estimated Useful Life	Life of the aircraft or term of the lease, whichever is less
Leasehold Improvements [Member]
Property Plant And Equipment [Line Items]
Property and Equipment, Estimated Useful Life	Life of the aircraft or term of the lease, whichever is less

Contract Revenue and Pass-through and Other Revenue - Additional Information (Detail) $ in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2022 USD ($) Air-craft	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)
Disaggregation Of Revenue [Line Items]
Deferred revenue		$ 10.4	$ 10.7
Lease revenue		$ 158.4	$ 170.2	$ 208.9
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]		Contract revenue	Contract revenue	Contract revenue
GoJet Agreements [Member]
Disaggregation Of Revenue [Line Items]
Loss recognized due to termination of lease agreements	$ 3.2
Lease revenue recognized		$ 30.0	$ 9.5	$ 0.0
CRJ-700
Disaggregation Of Revenue [Line Items]
Operating lease, term of contract		9 years
Number of aircraft classified as assets held for sale \| Air-craft	18

Contract Revenue and Pass-through and Other Revenue - Schedule of Deferred Revenue Remaining Performance Obligations (Detail) $ in Thousands	Sep. 30, 2022 USD ($)
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Total Revenue	$ 24,067
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	$ 385
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	$ 2,553
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	$ 10,065
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	$ 4,792
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	$ 3,679
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-10-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Total Revenue	$ 2,593
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year

Contract Revenue and Pass-through and Other Revenue - Schedule of Deferred Revenue Remaining Performance Obligations (Detail 1) $ in Thousands	Sep. 30, 2022 USD ($)
Revenue Performance Obligation Satisfied Over Time [Abstract]
Total Revenue	$ 24,067

Concentrations of Credit Risk - Additional Information (Detail) - USD ($)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Concentration Risk [Line Items]
Restricted cash	$ 3,342,000	$ 3,350,000
Outstanding letters of credit to be collateralized by amounts on deposit	3,300,000	3,400,000
Allowance for doubtful accounts	$ 0	$ 0
American Airlines Inc. [Member] \| Sales Revenue, Net [Member] \| Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	45.00%	45.00%	52.00%
United [Member] \| Sales Revenue, Net [Member] \| Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	48.00%	52.00%	48.00%

Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Finite Lived Intangible Assets [Line Items]
Amortization expense recognized		$ 1,000,000.0	$ 1,200,000	$ 1,500,000
Amortization expense for 2023	$ 1,300,000	1,300,000
Amortization expense for 2024	1,300,000	1,300,000
Amortization expense for 2025	1,200,000	$ 1,200,000
Remaining amortization period of intangible assets		3 years
Customer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Impairment loss on intangible assets		$ 1,900,000	0	0
Customer Relationships [Member] \| CRJ-900 Aircraft [Member]
Finite Lived Intangible Assets [Line Items]
Impairment loss on intangible assets	$ 1,900,000		$ 0	$ 0

Intangible Assets - Information About Intangible Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Intangible Assets Net Excluding Goodwill [Abstract]
Customer relationship	$ 43,800	$ 43,800
Accumulated amortization	(38,029)	(37,008)
Impairment	(1,929)
Net carrying value	$ 3,842	$ 6,792

Assets Held for Sale - Additional Information (Detail) $ in Thousands	12 Months Ended
	Sep. 30, 2022 USD ($) Air-craft
Long Lived Assets Held For Sale [Line Items]
Asset impairment	$ 171,824
Cash proceeds from sale	8,200
Aircraft held for sale	73,000
Gain on sale of aircraft	$ 4,723
CRJ-700
Long Lived Assets Held For Sale [Line Items]
Number of aircraft sold \| Air-craft	10
Cash proceeds from sale	$ 50,000
Aircraft held for sale	45,300
Gain on sale of aircraft	$ 4,700
Number of aircraft held for sale \| Air-craft	8
CRJ-900 [Member]
Long Lived Assets Held For Sale [Line Items]
Asset impairment	$ 109,700
Number of aircraft held for sale \| Air-craft	11
CRJ-200 [Member]
Long Lived Assets Held For Sale [Line Items]
Number of aircraft held for sale \| Air-craft	1
CRJ-900, CRJ-700 and CRJ-200 Aircraft [Member]
Long Lived Assets Held For Sale [Line Items]
Aircraft held for sale	$ 73,000
Impairment Charges [Member]
Long Lived Assets Held For Sale [Line Items]
Asset impairment	$ 62,000

Balance Sheet Information - Summary of Certain Significant Amounts Included in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Expendable parts and supplies, net:
Expendable parts and supplies	$ 31,913	$ 29,297
Less: obsolescence and other	(5,198)	(4,830)
Expendable parts and supplies, net	26,715	24,467
Prepaid expenses and other current assets:
Prepaid aviation insurance	2,618	2,171
Prepaid vendors	1,310	893
Prepaid other insurance	1,268	1,323
Lease Incentives	352	1,445
Other	1,068	1,053
Prepaid expenses and other current assets	6,616	6,885
Property and equipment, net:
Property and equipment-gross	1,270,563	1,621,437
Less: accumulated depreciation	(405,309)	(469,546)
Property and equipment-net	865,254	1,151,891
Other assets:
Investments in equity securities	15,178	25,149
Lease incentives	1,097	10,957
Other	15	15
Other assets	16,290	36,121
Other accrued expenses:
Accrued property taxes	5,866	8,783
Accrued interest	2,882	2,565
Accrued vacation	4,746	5,936
Accrued lodging	3,795	3,380
Accrued maintenance	1,453	1,580
Accrued liability on government payroll program	2,967	2,775
Accrued simulator costs	1,045	457
Accrued employee benefits	1,679	981
Accrued fleet operating expense	1,606	786
Short term lease incentive liability	97	3,318
Other	2,864	3,096
Other accrued expenses	29,000	33,657
Other noncurrent liabilities:
Warrant liabilities	25,225	21,964
Lease incentive obligations	1,050	6,358
Long term employee benefits	1,123	1,447
Long term liability on government payroll program		2,775
Other	1,821	2,047
Other noncurrent liabilities	29,219	34,591
Aircraft and Other Flight Equipment Substantially Pledged [Member]
Property and equipment, net:
Property and equipment-gross	1,260,143	1,611,544
Other Machinery and Equipment [Member]
Property and equipment, net:
Property and equipment-gross	5,577	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	992	1,184
Building [Member]
Property and equipment, net:
Property and equipment-gross	777	699
Furniture and Fixtures [Member]
Property and equipment, net:
Property and equipment-gross	$ 298	$ 300

Balance Sheet Information - Additional Information (Detail) - USD ($)	1 Months Ended		12 Months Ended
	Sep. 30, 2021	Jul. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Feb. 28, 2022	Feb. 28, 2021
Condensed Balance Sheet Statements Captions [Line Items]
Asset impairment			$ 171,824,000
Impairment of operating lease right-of-use assets			200,000	$ 0	$ 0
Depreciation expense			80,500,000	81,200,000	80,800,000
Estimated initial equity warrant asset value							$ 16,400,000
Warrant asset value			16,400,000
Losses on investments			13,715,000	6,816,000
Estimated initial warrant asset value						$ 3,200,000
Net losses on investments in equity securities			13,700,000
Aggregate carrying amount of investments in equity securities			15,200,000
Investments without readily determinable fair value			9,000,000.0
Archer Aviation, Inc. [Member]
Condensed Balance Sheet Statements Captions [Line Items]
Losses on investments			13,700,000	6,800,000
Heart Aerospace Incorporated [Member] \| Forward Purchase Contract [Member] \| Preferred Stock [Member]
Condensed Balance Sheet Statements Captions [Line Items]
Purchase of preferred stock		$ 5,000,000.0
Initial investment in preferred stock measured at cost		$ 5,000,000.0
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	$ 5,000,000.0
Total grant date value, Additional warrant to purchase shares	$ 5,600,000
CRJ-900 [Member]
Condensed Balance Sheet Statements Captions [Line Items]
Asset impairment			109,700,000
Impairment of property and equipment			$ 92,600,000
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration]			Asset impairment
Impairment of operating lease right-of-use assets			$ 15,200,000
Impairment of intangible asset			$ 1,900,000
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration]			Asset impairment
CRJ-900 [Member] \| Long Lived Assets [Member]
Condensed Balance Sheet Statements Captions [Line Items]
Asset impairment				$ 0	$ 0

Fair Value Measurements - Carrying Value and Estimated Fair Value of Long-term Debt, Including Current Maturities (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Long-term debt, including current maturities, carrying value	$ 615,310	$ 670,335
Long-term debt, including current maturities, fair value	$ 541,700	$ 676,800

Long-Term Debt, Finance Leases, and Other Borrowings - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Debt Instrument [Line Items]
Gross long-term debt, including current maturities	$ 615,310	$ 670,335
Less unamortized debt issuance costs	(8,303)	(9,295)
Less notes payable warrants	(7,272)	(9,630)
Net long-term debt, including current maturities	599,735	651,410
Less current portion, net of unamortized debt issuance costs	(97,218)	(111,710)
Net long-term debt	502,517	539,700
Revolving Credit Facility, Monthly, Through 2022 [Member]
Debt Instrument [Line Items]
Gross long-term debt, including current maturities	15,630	22,930
Senior and Subordinated Notes Payable to Secured Parties, Due in Monthly Installments Collateralized by the Underlying Aircraft Through 2027 [Member]
Debt Instrument [Line Items]
Gross long-term debt, including current maturities	73,850	86,551
Notes Payable to Secured Parties, Due in Semi Annual Installments Collateralized by the Underlying Aircraft Through 2028 [Member]
Debt Instrument [Line Items]
Gross long-term debt, including current maturities	131,010	152,100
Notes Payable to Secured Parties, Due in Quarterly Installments Collateralized by the Underlying Aircraft Through 2028 [Member]
Debt Instrument [Line Items]
Gross long-term debt, including current maturities	106,865	122,762
Other Obligations Due to Financial Institutions, Monthly or Quarterly Collateralized by the Underlying Equipment, Due 2022 Through 2031 [Member]
Debt Instrument [Line Items]
Gross long-term debt, including current maturities	18,038	4,581
Notes Payable to Financial Institution, Due in Monthly Installments Collateralized by the Underlying Equipment, Through 2024 [Member]
Debt Instrument [Line Items]
Gross long-term debt, including current maturities	26,758	45,559
Notes Payable to Financial Institution, Due in Monthly Installments Collateralized by the Underlying Aircraft, Through 2022 [Member]
Debt Instrument [Line Items]
Gross long-term debt, including current maturities		30,625
Notes Payable to Financial Institution, Due in Monthly Installments Secured by Flight Equipment, Through 2023 [Member]
Debt Instrument [Line Items]
Gross long-term debt, including current maturities	2,000	4,000
Notes Payable to Financial Institution, Quarterly, Through 2027 [Member]
Debt Instrument [Line Items]
Gross long-term debt, including current maturities	204,947	$ 201,227
Notes Payable to Financial Institution, Due in Monthly Installments Collateralized by the Underlying Equipment, Through 2027 [Member]
Debt Instrument [Line Items]
Gross long-term debt, including current maturities	$ 36,212

Long-Term Debt, Finance Leases, and Other Borrowings - Schedule of Long-term Debt (Parenthetical) (Detail)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Revolving Credit Facility, Monthly, Through 2022 [Member]
Debt Instrument [Line Items]
Debt instrument maturity year	2022	2022
Senior and Subordinated Notes Payable to Secured Parties, Due in Monthly Installments Collateralized by the Underlying Aircraft Through 2027 [Member]
Debt Instrument [Line Items]
Debt instrument maturity year	2027	2027
Long term debt interest rate description	due in monthly installments, interest based on LIBOR plus interest spread at 2.71%
Senior and Subordinated Notes Payable to Secured Parties, Due in Monthly Installments Collateralized by the Underlying Aircraft Through 2027 [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Long term debt, basis spread on variable rate	2.71%
Notes Payable to Secured Parties, Due in Semi Annual Installments Collateralized by the Underlying Aircraft Through 2028 [Member]
Debt Instrument [Line Items]
Debt instrument maturity year	2028	2028
Long term debt interest rate description	due in semi-annual installments, interest based on LIBOR plus interest spread at 4.75% to 6.25%
Notes Payable to Secured Parties, Due in Semi Annual Installments Collateralized by the Underlying Aircraft Through 2028 [Member] \| Minimum [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Long term debt, basis spread on variable rate	4.75%
Notes Payable to Secured Parties, Due in Semi Annual Installments Collateralized by the Underlying Aircraft Through 2028 [Member] \| Maximum [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Long term debt, basis spread on variable rate	6.25%
Other Obligations Due to Financial Institutions, Monthly or Quarterly Collateralized by the Underlying Equipment, Due 2022 Through 2031 [Member]
Debt Instrument [Line Items]
Long term debt interest rate description	monthly and/or quarterly interest due from 2022 through 2031
Other Obligations Due to Financial Institutions, Monthly or Quarterly Collateralized by the Underlying Equipment, Due 2022 Through 2031 [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Debt instrument maturity year	2022	2022
Other Obligations Due to Financial Institutions, Monthly or Quarterly Collateralized by the Underlying Equipment, Due 2022 Through 2031 [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Debt instrument maturity year	2031	2031
Notes Payable to Secured Parties, Due in Quarterly Installments Collateralized by the Underlying Aircraft Through 2028 [Member]
Debt Instrument [Line Items]
Debt instrument maturity year	2028	2028
Long term debt interest rate description	due in quarterly installments, interest based on LIBOR plus interest at spread 2.20% to 2.32% for senior note & 4.50% for subordinated note
Notes Payable to Secured Parties, Due in Quarterly Installments Collateralized by the Underlying Aircraft Through 2028 [Member] \| LIBOR [Member] \| Subordinated Note [Member]
Debt Instrument [Line Items]
Long term debt, basis spread on variable rate	4.50%
Notes Payable to Secured Parties, Due in Quarterly Installments Collateralized by the Underlying Aircraft Through 2028 [Member] \| Minimum [Member] \| LIBOR [Member] \| Senior Note [Member]
Debt Instrument [Line Items]
Long term debt, basis spread on variable rate	2.20%
Notes Payable to Secured Parties, Due in Quarterly Installments Collateralized by the Underlying Aircraft Through 2028 [Member] \| Maximum [Member] \| LIBOR [Member] \| Senior Note [Member]
Debt Instrument [Line Items]
Long term debt, basis spread on variable rate	2.32%
Notes Payable to Financial Institution, Due in Monthly Installments Collateralized by the Underlying Equipment, Through 2027 [Member]
Debt Instrument [Line Items]
Debt instrument maturity year	2027	2027
Long term debt interest rate description	due in monthly installments, interest based on LIBOR plus interest spread at 4.24%
Notes Payable to Financial Institution, Due in Monthly Installments Collateralized by the Underlying Equipment, Through 2027 [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Long term debt, basis spread on variable rate	4.24%
Notes Payable to Financial Institution, Quarterly, Through 2027 [Member]
Debt Instrument [Line Items]
Debt instrument maturity year	2027	2027
Long term debt interest rate description	quarterly interest based on LIBOR plus interest spread at 3.50%
Notes Payable to Financial Institution, Quarterly, Through 2027 [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Long term debt, basis spread on variable rate	3.50%
Notes Payable to Financial Institution, Due in Monthly Installments Collateralized by the Underlying Equipment, Through 2024 [Member]
Debt Instrument [Line Items]
Debt instrument maturity year	2024	2024
Long term debt interest rate description	due in monthly installments, interest based on LIBOR plus interest spread at 3.10%
Notes Payable to Financial Institution, Due in Monthly Installments Collateralized by the Underlying Equipment, Through 2024 [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Long term debt, basis spread on variable rate	3.10%
Notes Payable to Financial Institution, Due in Monthly Installments Collateralized by the Underlying Aircraft, Through 2022 [Member]
Debt Instrument [Line Items]
Debt instrument maturity year	2022	2022
Long term debt interest rate description	due in monthly installments, plus interest spread at 5.00%
Notes Payable to Financial Institution, Due in Monthly Installments Collateralized by the Underlying Aircraft, Through 2022 [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Long term debt, basis spread on variable rate	5.00%
Notes Payable to Financial Institution, Due in Monthly Installments Secured by Flight Equipment, Through 2023 [Member]
Debt Instrument [Line Items]
Debt instrument maturity year	2023	2023
Long term debt interest rate description	due in monthly installments, plus interest spread at 5.00%
Notes Payable to Financial Institution, Due in Monthly Installments Secured by Flight Equipment, Through 2023 [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Long term debt, basis spread on variable rate	5.00%
Revolving Credit Facility, Monthly, Through 2022 [Member]
Debt Instrument [Line Items]
Long term debt interest rate description	monthly interest based on LIBOR plus interest spread at 3.75%
Revolving Credit Facility, Monthly, Through 2022 [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Long term debt, basis spread on variable rate	3.75%

Long-Term Debt, Finance Leases, and Other Borrowings - Schedule of Principal Maturities of Long-term Debt (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Long Term Debt By Maturity [Abstract]
2023	$ 99,102
2024	73,374
2025	64,512
2026	271,824
2027	63,958
Thereafter	42,540
Long-term debt	$ 615,310	$ 670,335

Long-Term Debt, Finance Leases, and Other Borrowings - Additional Information (Detail)				1 Months Ended		12 Months Ended
	Nov. 13, 2020 USD ($)	Nov. 12, 2020 USD ($) Air-craft	Oct. 30, 2020 USD ($) $ / shares shares	Apr. 30, 2022	Dec. 31, 2021 USD ($)	Sep. 30, 2022 USD ($) $ / shares	Sep. 30, 2021 USD ($)	Nov. 14, 2020 USD ($)
Debt Instrument [Line Items]
Property and equipment, net						$ 865,254,000	$ 1,151,891,000
Long-Term Debt						599,735,000	651,410,000
Debt outstanding						$ 615,310,000	$ 670,335,000
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]
Secured term loan facility, amount borrowed			$ 43,000,000.0
Secured term loan facility, additional amount borrowed	$ 152,000,000.0
Warrants to purchase shares of common stock \| shares			4,899,497
Warrants of common stock exercise price \| $ / shares			$ 3.98
Debt issuance costs allocated to warrants						$ 100,000
Repayments of long term debt		$ 167,700,000
Number of aircraft financed \| Air-craft		44
Loan Agreement [Member] \| EDC Loans [Member]
Debt Instrument [Line Items]
Debt issuance costs	3,100,000
Repayments of long term debt	1,000,000.0
Payment of loans		$ 164,200,000
Discount for balance amount of loans		$ 3,500,000
Unamortized debt discounts	2,500,000
Loan Agreement [Member] \| FortyThreeMillionTreasuryLoanMember
Debt Instrument [Line Items]
Capitalized debt issuance costs, net			$ 700,000
Loan Agreement [Member] \| $152M Treasury Loan [Member]
Debt Instrument [Line Items]
Capitalized debt issuance costs, net	2,300,000
Spare Engine Facility [Member] \| Loan Agreement [Member]
Debt Instrument [Line Items]
Secured term loan facility, maximum borrowing capacity					$ 54,000.0
Long term debt, basis spread on variable rate					425.00%
Debt instrument, maturity date					Dec. 31, 2027
Debt instrument, face amount					$ 35,300
Long term debt interest rate description						LIBOR plus 4.25%
Long term debt, basis spread on variable rate					425.00%
Equipment Notes [Member]
Debt Instrument [Line Items]
Long-Term Debt						$ 131,000,000.0
Working Capital Draw Loan [Member] \| Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt outstanding						$ 15,600,000
Secured Term Loan Facility [Member] \| Loan Agreement [Member]
Debt Instrument [Line Items]
Secured term loan facility, maximum borrowing capacity			200,000,000.0
Debt instrument, maturity date						Oct. 30, 2025
Secured Term Loan Facility [Member] \| Loan Agreement [Member] \| Treasury Loan [Member]
Debt Instrument [Line Items]
Secured term loan facility, amount borrowed			$ 43,000,000.0
Secured term loan facility, additional amount borrowed	$ 152,000,000.0							$ 0
Long term debt, basis spread on variable rate			3.50%
Debt instrument, maturity date			Oct. 30, 2025
Long term debt, basis spread on variable rate			3.50%
Aircraft and Equipment [Member] \| Pledged as Collateral [Member]
Debt Instrument [Line Items]
Property and equipment, net						$ 856,900,000

Earnings Per Share - Calculations of Net (Loss) Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share And Equity [Abstract]
Net (loss) income	$ (182,678)	$ 16,588	$ 27,464
Basic weighted average common shares outstanding	36,133	35,713	35,237
Add: Incremental shares for:
Dilutive effect of warrants		2,543
Dilutive effect of restricted stock		587	71
Diluted weighted average common shares outstanding	36,133	38,843	35,308
Net (loss) income per share
Basic	$ (5.06)	$ 0.46	$ 0.78
Diluted	$ (5.06)	$ 0.43	$ 0.78

Earnings Per Share - Number of Weighted-Average Potentially Dilutive Shares Excluded from Calculation of Diluted Net (Loss) Income Per Share (Detail) shares in Thousands	12 Months Ended
	Sep. 30, 2022 shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net (loss) income per share	864
Number of Warrants [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net (loss) income per share	758
Restricted Stock [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net (loss) income per share	106

Common Stock - Additional Information (Detail) - $ / shares	Sep. 30, 2022	Sep. 30, 2021
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 - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Current
Federal		$ (39)
State	$ 231	202	$ 297
Total current income tax provision	231	163	297
Deferred
Federal	(47,879)	4,494	8,404
State	(4,342)	1,171	830
Total deferred income tax provision	(52,221)	5,665	9,234
(Benefit) provision for income taxes	$ (51,990)	$ 5,828	$ 9,531

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Schedule of Reconciliation between Effective Tax Rate Income from Continuing Operations and Statutory Rate (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract]
Income tax (benefit) provision at federal statutory rate	$ (49,280)	$ 4,707	$ 7,769
(Reduction) increase in income taxes resulting from:
State taxes, net of federal tax benefit	(3,953)	669	968
Nondeductible stock compensation expenses	251	(241)	524
Permanent items	206	292	314
Change in valuation allowances	(22)	(140)	1,173
162(m) limitation	11	12	14
Impact of changing rates on deferred tax assets	(247)	509	(2,313)
Expired tax attributes	964	152	633
Other	80	(132)	449
(Benefit) provision for income taxes	$ (51,990)	$ 5,828	$ 9,531

Income Taxes - Schedule of Components of Deferred Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Net operating loss carryforwards	$ 131,897	$ 121,604
Deferred credits	703	899
Other accrued expenses	1,769	2,682
Prepaids and other	1,175	1,969
Warrant liabilities	5,725	5,018
State alternative minimum tax	1	1
Other reserves and estimated losses	873	729
Operating lease liabilities	8,012	15,226
Deferred revenue	5,506	1,439
Gross deferred tax assets	155,661	149,567
Less: valuation allowance	(2,901)	(2,922)
Total net deferred tax assets	152,760	146,645
Intangible assets	(877)	(1,552)
Operating lease right-of-use assets	(2,055)	(11,467)
Property and equipment	(166,586)	(200,105)
Unrealized gain on equity investments	(961)	(3,461)
Total deferred tax liabilities	(170,479)	(216,585)
Net deferred tax liability	$ (17,719)	$ (69,940)

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Income Taxes [Line Items]
Operating loss carryforwards, valuation allowance	$ 2.9	$ 2.9
Unrecognized tax benefits if unrecognized, the balance of uncertain tax benefits would impact the effective tax rate	4.9	$ 4.9	$ 4.9
Domestic Tax Authority [Member]
Income Taxes [Line Items]
Net operating loss carryforwards not subject to expiration	$ 180.9
Effective income tax rate reconciliation, at federal statutory income tax rate, percent	80.00%
Domestic Tax Authority [Member] \| 2027-2038 [Member]
Income Taxes [Line Items]
Net operating loss carryforwards	$ 591.4
State and Local Jurisdiction [Member] \| 2021-2041 [Member]
Income Taxes [Line Items]
Net operating loss carryforwards	$ 247.0
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	2042

Income Taxes - Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Income Tax Uncertainties [Abstract]
Unrecognized tax benefits beginning balance	$ 4,866	$ 4,866	$ 4,688
Gross decreases — tax positions in prior period	0	0	0
Gross increases — tax positions in prior period	0	0	178
Unrecognized tax benefits ending balance	$ 4,866	$ 4,866	$ 4,866

Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost related to unvested share-based compensation arrangements	$ 4,400
Unrecognized compensation cost, period for recognition	1 year 8 months 12 days
Share-based compensation expense	$ 2,800	$ 3,100	$ 4,400
Repurchased shares, value	$ 455	$ 1,486	$ 586
Common Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Repurchased shares, shares	147,108	155,174	142,439
Repurchased shares, value	$ 500	$ 1,500	$ 600
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 - Schedule of Restricted Stock Activity (Detail) - Restricted Stock [Member] - Two Thousand And Eighteen Equity Incentive Plan - $ / shares	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Unvested, Beginning Balance	1,006,206	1,195,548	847,974
Number of Shares, Granted	718,959	346,123	910,297
Number of Shares, Vested	(455,303)	(492,465)	(555,473)
Number of Shares, Cancelled	(97,369)	(43,000)	(7,250)
Number of Shares, Unvested, Ending Balance	1,172,493	1,006,206	1,195,548
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance	$ 6.22	$ 5.47	$ 9.56
Weighted-Average Grant Date Fair Value, Granted	3.20	9.53	3.97
Weighted-Average Grant Date Fair Value, Vested	6.13	6.89	9.21
Weighted-Average Grant Date Fair Value, Cancelled	2.97	4.57	7.89
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance	$ 4.43	$ 6.22	$ 5.47

Employee Stock Purchase Plan - Additional Information (Detail) - 2019 ESPP [Member] - shares	12 Months Ended	42 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Ordinary shares, discount rate	10.00%
Number of ordinary shares issued	109,943	304,137
Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Eligible employees contribution from their eligible compensation during each semi annual	1.00%
Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Eligible employees contribution from their eligible compensation during each semi annual	15.00%
Number of ordinary shares issued	500,000

Leases - Additional Information (Detail)	12 Months Ended
Leases - Additional Information (Detail)	Sep. 30, 2022 USD ($) Air-craft Engine	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 23, 2005 USD ($) Airfleet
Operating Leased Assets [Line Items]
Number of leased aircraft \| Air-craft	16
Aggregate rental expense under all operating aircraft, equipment and facility leases	$ 43,400,000	$ 44,600,000	$ 51,400,000
Number of leased aircraft under finance lease \| Air-craft	2
Number of spare engines leased under finance lease \| Engine	3
Finance lease obligations	$ 18,000,000.0
Operating lease, right-of-use assets	43,090,000	93,100,000
Operating lease current liabilities	17,233,000	32,652,000
Operating lease noncurrent liabilities	16,732,000	33,991,000
Financing lease current	$ 2,700,000
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Current portion of long-term debt and finance leases
Financing lease noncurrent liabilities	$ 15,300,000
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-term debt and finance leases, excluding current portion
Operating lease payments in operating cash flows	$ 36,262,000	47,612,000	44,173,000
Financing lease payments in operating cash flows	300,000	600,000
Financing lease payments in financing cash flows	2,500,000	2,300,000
Impairment loss	200,000	0	0
Cash, cash equivalents and availability under lines of credit	61,025,000	123,867,000	$ 102,841,000		$ 72,501,000
Deferred income taxes	17,719,000	$ 69,940,000
RASPRO Aircraft Lease Agreement [Member]
Operating Leased Assets [Line Items]
Deferred income taxes				$ 4,000,000.0
CRJ-900 Aircraft [Member] \| RASPRO Aircraft Lease Agreement [Member]
Operating Leased Assets [Line Items]
Number of leased aircraft \| Airfleet						15
Cash, cash equivalents and availability under lines of credit						$ 35,000,000.0
CRJ-900 Aircraft [Member]
Operating Leased Assets [Line Items]
Impairment loss	$ 15,200,000

Leases - Components of Operating and Finance Lease Costs (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Operating lease costs	$ 37,637	$ 37,929
Variable and short-term lease costs	5,783	6,708
Interest expense on finance lease liabilities	547	576
Amortization expense of finance lease assets	2,705	2,130
Total lease costs	$ 46,672	$ 47,343

Leases - Schedule of Weighted Average Remaining Terms and Discount Rates for Operating and Financing Leases (Detail)	Sep. 30, 2022
Finance leases:
Weighted average remaining lease term	7 years 4 months 24 days
Weighted average discount rate	6.10%
Operating leases:
Weighted average remaining lease term	3 years 9 months 18 days
Weighted average discount rate	4.50%

Leases - Schedule of Future Minimum Rental Payments under Operating and Finance Leases of Initial or Remaining Non-cancelable Lease Terms (Detail) $ in Thousands	Sep. 30, 2022 USD ($)
Operating Leases
2023	$ 18,356
2024	10,172
2025	1,564
2026	1,046
2027	1,029
Thereafter	5,054
Total lease payments	37,221
Less: imputed interest	(3,256)
Amounts recorded in the consolidated balance sheet	33,965
Finance Leases
2023	2,730
2024	7,054
2025	1,800
2026	1,800
2027	1,800
Thereafter	6,600
Total lease payments	21,784
Less: imputed interest	(3,746)
Amounts recorded in the consolidated balance sheet	$ 18,038

Commitments and Contingencies - Additional Information (Detail)	1 Months Ended	12 Months Ended
	Jul. 31, 2021 USD ($) Lawsuit	Sep. 30, 2023 Engine	Sep. 30, 2022 USD ($) Engine	Mar. 31, 2021 USD ($)	Feb. 28, 2021 USD ($)
Purchase Commitment Excluding Longterm Commitment [Line Items]
Number of putative class action lawsuits \| Lawsuit	2
Forward Purchase Contract [Member] \| Heart Aerospace Incorporated [Member] \| Maximum [Member]
Purchase Commitment Excluding Longterm Commitment [Line Items]
Purchase commitment amount \| $	$ 1,200,000,000.0
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			10
New spare engines delivery month and year description			The Company agreed to purchase and take delivery of 10 new CF34-8C5 or CF34-8E5 engines with delivery dates starting from July 1, 2021 through November 1, 2022. During the quarter ended March 31, 2021, a $7.0 million non-refundable purchase deposit was made for the first five (5) engines to be delivered in calendar year 2021.
Purchase deposit \| $				$ 7,000,000.0
Number of new spare engines to be delivered			5
Number of additional spare engines to be acquired beyond 2022			10
Purchase commitment amount \| $			$ 52,200,000
Number of new spare engines purchased			9
CF34-8C5 or CF34-8E5 Engines [Member] \| Scenario Forecast [Member] \| Letter Agreement No. 13-3 [Member]
Purchase Commitment Excluding Longterm Commitment [Line Items]
Number of new spare engines to be delivered		3
eVTOL Aircraft [Member] \| Forward Purchase Contract [Member] \| Archer Aviation, Inc. [Member]
Purchase Commitment Excluding Longterm Commitment [Line Items]
Purchase commitment amount \| $					$ 200,000,000.0

Subsequent Events - Additional Information (Detail) $ in Millions		12 Months Ended
	Dec. 27, 2022 USD ($)	Sep. 30, 2022 USD ($)	Dec. 15, 2022 USD ($)
Subsequent Event [Line Items]
Revolving loan		$ 25.5
Amended and Restated United CPA [Member]
Subsequent Event [Line Items]
Consideration for amended, description		In consideration for entering into the Amended and Restated United CPA and providing the revolving line of credit (discussed below), the Company has agreed to (i) grant United the right to designate one individual (the “United Designee”) to be appointed to the Company’s board of directors, and (ii) issue to United shares of our common stock equal to ten percent (10.0%) of the Company’s issued and outstanding shares on a fully diluted basis as of the date of such issuance (the “United Shares”). United’s board designee rights will terminate at such time as United’s equity ownership in the Company falls below five percent (5.0%).
Amended Credit Facility [Member] \| Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Credit facility, description		(i) extend the Revolving Loan Maturity Date (as defined in the Amended Credit Facility) from the earlier to occur of November 30, 2028 or the date of the termination of the United CPA; (ii) provide for a revolving loan of $10.0 million plus certain other fees (the “Effective Date Bridge Loan”), which will be due and payable on January 31, 2024, subject to certain mandatory prepayment requirements; (iii) provide for Revolving Commitments (as defined in the Amended Credit Facility) equal to $30.7 million (inclusive of the amount outstanding under such facility as of the effective date of the Assignment) plus the original principal amount of the Effective Date Bridge Loan; (iv) amortization of the obligations outstanding under the Existing Agreement commencing the last business day of each fiscal quarter commencing the fiscal quarter ending March 31, 2025; (v) a covenant capping Restricted Payments (as defined in the Amended Credit Facility) at $5.0 million per fiscal year, a consolidated interest and rental coverage ratio of 1.00 to 1.00 covenant, measured at the end of each fiscal quarter, and a Liquidity (as defined in the Amended Credit Facility) requirement of not less than $15.0 million at close of any business day. Amounts borrowed under this facility bear interest at 3.50% for Base Rate Loans and 4.50% per annum for Term SOFR Loans (as each term is defined in the Amended Credit Facility.
Amended Credit Facility [Member] \| Revolving Credit Facility [Member] \| Subsequent Event
Subsequent Event [Line Items]
Revolving loan	$ 10.0
Revolving commitments	30.7
Covenant capping restricted payments	$ 5.0
Consolidated interest and rental coverage ratio	1.00
Liquidity requirement	$ 15.0
Amended Credit Facility [Member] \| Revolving Credit Facility [Member] \| Subsequent Event \| Base Rate Loans [Member]
Subsequent Event [Line Items]
Interest rate	3.50%
Amended Credit Facility [Member] \| Revolving Credit Facility [Member] \| Subsequent Event \| Term SOFR Loans [Member]
Subsequent Event [Line Items]
Interest rate	4.50%
Amendment to Credit Agreement with Economic Development Corporation of Canada [Member] \| Subsequent Event \| Credit Agreement with Economic Development Corporation of Canada and Mitsubishi Heavy Industries RJ Aviation Inc [Member]
Subsequent Event [Line Items]
Subordinated debt payable forgive			$ 700,000.0