Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	Apr. 30, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
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	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		28,785,577

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Current assets:
Cash and cash equivalents	$ 77,743	$ 103,311
Marketable securities		19,921
Restricted cash	3,646	3,823
Receivables, net	12,071	14,290
Expendable parts and supplies, net	19,229	15,658
Prepaid expenses and other current assets	47,451	40,914
Total current assets	160,140	197,917
Property and equipment, net	1,237,615	1,250,829
Intangibles, net	10,437	11,341
Lease and equipment deposits	6,916	2,598
Other assets	10,178	9,703
Total assets	1,425,286	1,472,388
Current liabilities:
Current portion of long-term debt and capital leases	147,114	155,170
Accounts payable ($2,573 and $1,330 to related party)	40,527	54,307
Accrued compensation	11,675	12,208
Other accrued expenses	27,344	29,696
Total current liabilities	226,660	251,381
Noncurrent liabilities:
Long-term debt and capital leases, excluding current portion	696,856	760,177
Deferred credits ($6,829 and $7,702 to related party)	14,680	15,393
Deferred income taxes	49,836	39,797
Other noncurrent liabilities	27,969	31,173
Total noncurrent liabilities	789,341	846,540
Total liabilities	1,016,001	1,097,921
Commitments and contingencies (Note 13 and Note 14)
Stockholders' equity:
Preferred stock of no par value, 5,000,000 shares authorized; no shares issued and outstanding
Common stock of no par value and additional paid-in capital, 125,000,000 shares authorized; 27,969,475 (2019) and 23,902,903 (2018) shares issued and outstanding, 6,780,297 (2019) and 10,614,990 (2018) warrants issued and outstanding	237,171	234,683
Retained earnings	172,114	139,784
Total stockholders' equity	409,285	374,467
Total liabilities and stockholders' equity	$ 1,425,286	$ 1,472,388

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Statement Of Financial Position [Abstract]
Accounts payable to related party	$ 2,573	$ 1,330
Deferred credits to related party	$ 6,829	$ 7,702
Preferred stock, par value	$ 0	$ 0
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, no par value	$ 0	$ 0
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	27,969,475	23,902,903
Common stock, shares outstanding	27,969,475	23,902,903
Common stock, warrants issued	6,780,297	10,614,990
Common stock, warrants outstanding	6,780,297	10,614,990

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Operating revenues:
Total operating revenues	$ 177,147	$ 167,640	$ 355,303	$ 332,324
Operating expenses:
Flight operations	49,366	54,647	102,611	103,807
Fuel	101	130	222	198
Maintenance	45,380	51,409	85,182	105,756
Aircraft rent	14,110	18,319	28,229	36,582
Aircraft and traffic servicing	1,065	783	1,999	1,744
General and administrative	13,472	10,337	25,686	21,267
Depreciation and amortization	19,276	15,666	37,767	31,598
Total operating expenses	142,770	151,291	281,696	300,952
Operating income	34,377	16,349	73,607	31,372
Other (expenses) income, net:
Interest expense	(13,772)	(13,343)	(28,614)	(27,474)
Interest income	299	10	455	19
Loss on extinguishment of debt	(3,616)		(3,616)
Other (expense) income, net	47	(36)	533	(102)
Total other (expense), net	(17,042)	(13,369)	(31,242)	(27,557)
Income before taxes	17,335	2,980	42,365	3,815
Income tax expense (benefit)	4,086	608	10,035	(21,181)
Net income	$ 13,249	$ 2,372	$ 32,330	$ 24,996
Net income per share attributable to common shareholders
Basic	$ 0.38	$ 0.10	$ 0.93	$ 1.07
Diluted	$ 0.38	$ 0.10	$ 0.92	$ 1.06
Weighted-average common shares outstanding
Basic	34,699	23,282	34,607	23,279
Diluted	34,962	23,570	35,041	23,530
Contract Revenue [Member]
Operating revenues:
Total operating revenues	$ 169,771	$ 156,515	$ 340,220	$ 310,904
Pass Through and Other [Member]
Operating revenues:
Total operating revenues	$ 7,376	$ 11,125	$ 15,083	$ 21,420

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Contract Revenue [Member]
Revenue from related party	$ 94,734	$ 89,210	$ 188,365	$ 175,204
Pass Through and Other [Member]
Revenue from related party	$ 2,080	$ 1,668	$ 3,739	$ 3,355

Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Number of Warrants [Member]	Common Stock and Additional Paid-In Capital [Member]	Retained Earnings [Member]
Beginning balance at Sep. 30, 2017	$ 222,224			$ 114,456	$ 107,768
Beginning balance, shares at Sep. 30, 2017		11,294,083	12,230,625
Stock compensation expense	428			428
Cumulative effect of change in accounting principle	665				665
Net income	22,624				22,624
Ending balance at Dec. 31, 2017	245,941			114,884	131,057
Ending balance, shares at Dec. 31, 2017		11,294,083	12,230,625
Beginning balance at Sep. 30, 2017	222,224			114,456	107,768
Beginning balance, shares at Sep. 30, 2017		11,294,083	12,230,625
Net income	24,996
Ending balance at Mar. 31, 2018	248,704			115,275	133,429
Ending balance, shares at Mar. 31, 2018		12,394,215	11,140,905
Beginning balance at Dec. 31, 2017	245,941			114,884	131,057
Beginning balance, shares at Dec. 31, 2017		11,294,083	12,230,625
Stock compensation expense	391			391
Warrants converted to common stock		1,089,720	(1,089,720)
Restricted shares issued, shares		10,412
Net income	2,372				2,372
Ending balance at Mar. 31, 2018	248,704			115,275	133,429
Ending balance, shares at Mar. 31, 2018		12,394,215	11,140,905
Beginning balance at Sep. 30, 2018	374,467			234,683	139,784
Beginning balance, shares at Sep. 30, 2018		23,902,903	10,614,990
Stock compensation expense	1,454			1,454
Stock issuance costs	157			157
Net income	19,081				19,081
Ending balance at Dec. 31, 2018	395,159			236,294	158,865
Ending balance, shares at Dec. 31, 2018		23,902,903	10,614,990
Beginning balance at Sep. 30, 2018	374,467			234,683	139,784
Beginning balance, shares at Sep. 30, 2018		23,902,903	10,614,990
Repurchased shares		$ (500)
Net income	32,330
Ending balance at Mar. 31, 2019	409,285			237,171	172,114
Ending balance, shares at Mar. 31, 2019		27,969,475	6,780,297
Beginning balance at Dec. 31, 2018	395,159			236,294	158,865
Beginning balance, shares at Dec. 31, 2018		23,902,903	10,614,990
Stock compensation expense	1,298			1,298
Repurchased shares	(449)			(449)
Repurchased shares, shares		(52,967)
Stock issuance costs	28			28
Warrants converted to common stock		3,834,693	(3,834,693)
Restricted shares issued, shares		284,846
Net income	13,249				13,249
Ending balance at Mar. 31, 2019	$ 409,285			$ 237,171	$ 172,114
Ending balance, shares at Mar. 31, 2019		27,969,475	6,780,297

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 32,330	$ 24,996
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	37,767	31,598
Stock compensation expense	2,752	819
Deferred income taxes	10,039	(18,646)
Amortization of unfavorable lease liabilities and deferred credits	(5,670)	(5,552)
Amortization of debt financing costs and accretion of interest on non-interest-bearing subordinated notes	2,000	2,636
Loss on extinguishment of debt	3,616
(Gain) loss on disposal of assets	(33)	198
Provision for obsolete expendable parts and supplies	319	62
Changes in assets and liabilities:
Receivables	1,734	(8,158)
Expendable parts and supplies	(3,890)	(390)
Prepaid expenses and other current assets	(7,244)	9,428
Accounts payable	(3,451)	6,685
Accrued liabilities	(499)	(2,468)
Net cash provided by operating activities	69,770	41,208
Cash flows from investing activities:
Capital expenditures	(34,250)	(16,978)
Sales of investment securities	20,077
Net returns of lease and equipment deposits	(4,318)	23
Net cash used in investing activities	(18,491)	(16,955)
Cash flows from financing activities:
Proceeds from long-term debt	91,200	85,441
Principal payments on long-term debt and capital leases	(163,748)	(110,836)
Debt financing costs	(2,540)	(2,678)
Stock issuance costs	185
Repurchase of stock	(449)
Debt prepayment costs	(1,672)
Net cash used in financing activities	(77,024)	(28,073)
Net change in cash, cash equivalents and restricted cash	(25,745)	(3,820)
Cash, cash equivalents and restricted cash at beginning of period	107,134	60,347
Cash, cash equivalents and restricted cash at end of period	81,389	56,527
Supplemental cash flow information
Cash paid for interest	27,937	24,509
Cash paid for income taxes, net	51	46
Supplemental non-cash investing and financing activities
Accrued capital expenditures	$ 6,345
Acquisition of capital leases		$ 10,473

Organization and Operations

6 Months Ended

Mar. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Operations

1.	Organization and Operations

About Mesa Air Group, Inc.

Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. ("Mesa" or the "Company") is a holding company whose principal subsidiary, Mesa Airlines, Inc. ("Mesa Airlines"), operates as a regional air carrier providing scheduled passenger service to 129 cities in 41 states, the District of Columbia, Canada, Mexico, Cuba, and the Bahamas. As of March 31, 2019, Mesa operated a fleet of 145 aircraft with approximately 609 daily departures and 3,400 employees. Mesa operates all of its flights as either American Eagle or United Express flights pursuant to the terms of the capacity purchase agreements entered into with American Airlines, Inc. (“American”) and United Airlines, Inc. (“United”).

The financial arrangements between the Company and its major airline partners involve a revenue-guarantee arrangement (i.e. a "capacity purchase agreement") whereby the major airline pays a monthly guaranteed amount for each aircraft under contract, a fixed fee for each block hour (the number of hours during which the aircraft is in revenue service, measured from the time of gate departure before take-off until the time of gate arrival at the destination) and flight flown and reimbursement of certain direct operating expenses in exchange for providing regional flying. The major airline partners also pay certain expenses directly to suppliers, such as fuel, ground operations and landing fees. Under the terms of these capacity purchase agreements, the major airline controls route selection, pricing and seat inventories, thereby reducing the Company's exposure to fluctuations in passenger traffic, fare levels, and fuel prices.

On August 8, 2018, the Company filed its Second Amended and Restated Articles of Incorporation, which, among other things: (i) effected a 2.5-for-1 stock split of its common stock; and (ii) increased the authorized number of shares of its common and preferred stock to 125,000,000 and 5,000,000, respectively. All references to share and per share amounts in the Company's condensed consolidated financial statements have been retrospectively revised to reflect the stock split and increase in authorized shares.

On August 14, 2018, the Company completed an initial public offering ("IPO") of its common stock, in which it issued and sold 9,630,000 shares (the "Firm Shares") of common stock at a public offering price of $12.00 per share, resulting in gross proceeds to the Company of approximately $115.6 million. Additionally, in connection with the IPO, the Company granted the underwriters an option to purchase up to an additional 1,444,500 shares of common stock at the same price. On September 11, 2018, the Company closed the sale of 1,344,500 shares ("Option Shares") of its common stock, in connection with the partial exercise of the overallotment option granted to the underwriters in its IPO. Of the 1,344,500 Option Shares sold, 723,985 were purchased directly from the Company and the remaining 620,515 shares were purchased directly from the selling shareholders. The Firm Shares and Option Shares were sold to the public for a price of $12.00 per share.

The sale of the Firm Shares and Option Shares raised gross proceeds of approximately $124.2 million. The Company did not receive any proceeds from the sale of the Option Shares by the selling shareholders. The Company received $111.7 million in net proceeds after deducting $8.7 million of underwriting discounts and commissions and $3.8 million in offering costs.

As part of the IPO, stock appreciation rights ("SARs") previously issued under the Mesa Air Group, Inc. Amended and Restated Stock Appreciation Rights Plan (the "SAR Plan"), which settled only in cash, were cancelled and exchanged for an aggregate of 1,266,034 shares of restricted common stock under the Company's 2018 Equity Incentive Plan (the "2018 Plan"), of which 966,022 were fully vested upon issuance and are included in the number of shares of common stock outstanding after the IPO. Of the 966,022 fully vested shares, 314,198 shares were retained by the Company to satisfy tax withholding obligations, resulting in a net issuance of 651,824 shares. Additionally, 983,113 shares of restricted common stock were issued to certain of its employees and directors under its 2018 Plan in exchange for the cancellation of 491,915 shares of existing unvested restricted phantom stock units and 491,198 shares of restricted stock under the 2011 and 2017 Plans, respectively.

American Capacity Purchase Agreement

As of March 31, 2019, the Company operated 64 CRJ-900 aircraft for American under a capacity purchase agreement (the "American Capacity Purchase Agreement"). Unless otherwise extended or amended, the capacity purchase agreement for the aircraft expires between 2021 and 2025. In exchange for providing flights and all other services under the agreement, the Company receives a fixed monthly minimum amount per aircraft, plus certain additional amounts based upon the number of flights and block hours flown during the month. In addition, the Company may also receive incentives or pay penalties based upon the Company's operational performance, including controllable on-time departure and controllable completion percentages. American also reimburses the Company for the actual amount incurred for certain items such as passenger liability and hull insurance, and aircraft property taxes. In addition, American also provides, at no cost to the Company, certain ground handling and customer service functions, as well as airport-related facilities and fuel. The Company also receives a monthly profit margin payment from American based on the number of aircraft operating. The capacity purchase agreement is subject to early termination for cause under specified circumstances and subject to the Company's right to cure under certain conditions. American had a 7.2% ownership interest in the Company, calculated on a fully-diluted basis as of March 31, 2019, and September 30, 2018. The related party amounts presented on the condensed consolidated balance sheets and statements of operations pertain to American.

On January 31, 2019, the Company entered into an amendment to the American Capacity Purchase Agreement, the terms of which provide for new and revised operational performance metrics, the Company’s right to earn additional incentive compensation based on the achievement of such metrics, and the right of American to permanently withdraw up to six (6) aircraft in the event the Company fails to meet such new/revised performance metrics. Under the terms of such amendment the Company also agreed, effective April 2, 2019, to convert two (2) aircraft to be utilized by the Company as operational spares in the Company’s sole discretion throughout its system.

United Capacity Purchase Agreement

As of March 31, 2019, the Company operated 20 CRJ-700 and 60 E-175 aircraft for United under a capacity purchase agreement (the "United Capacity Purchase Agreement"). Subject to certain early termination rights, the capacity purchase agreement for each of the 20 CRJ-700 aircraft expires between August and December 2019. Subject to early termination rights, the capacity purchase agreement for 30 of the E-175 aircraft (owned by United) expires between June 2019 and August 2020, subject to United's right to extend for four additional two-year terms (maximum of eight years). Subject to early termination rights, the capacity purchase agreement for 18 of the E-175 aircraft (owned by Mesa) expires between January 2028 and November 2028. During fiscal 2017, the Company and United expanded the capacity purchase agreement to include, subject to early termination rights, an additional 12 E-175 aircraft (purchased by United) with the aircraft entering service through January 2018 for five-year terms, subject to United's right to extend for four additional two-year terms (maximum of eight years). In exchange for performing the flight services under such agreement, the Company receives from United a fixed monthly minimum amount per aircraft, plus certain additional amounts based upon the number of flights and block hours flown during the month. Additionally, certain costs incurred by the Company in performing the flight services are "pass-through" costs, whereby United agrees to reimburse the Company for the actual amounts incurred for the following items: property tax per aircraft, passenger liability insurance, and additionally for the E-175 aircraft owned by United, heavy airframe and engine maintenance, landing gear, auxiliary power units ("APU") and component maintenance. The Company also receives a profit margin based upon certain reimbursable costs under the agreement, as well as its operational performance in addition to a fixed profit margin. The capacity purchase agreement is also subject to early termination for cause under specified circumstances and subject to the Company's right to cure under certain circumstances. United is also permitted, subject to certain conditions, to terminate the agreement early in its discretion by giving Mesa notice of 90 days or more.

In February 2018, the Company mutually agreed with United to temporarily remove two aircraft from service under its United Capacity Purchase Agreement until the Company was able to fully staff flight operations. During the temporary removal, the Company agreed to pay the lease costs associated with the two E-175 aircraft, which totaled $1.9 million. In June 2018, the Company was able to fully staff flight operations and these two E-175 aircraft were placed back into service under the United Capacity Purchase Agreement.

Summary of Significant Accounting Policies

6 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.	Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed 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.

These condensed consolidated financial statements should be read in conjunction with, the Company's audited consolidated financial statements and notes thereto as of and for the year ended September 30, 2018 included in the Company's Annual Report on Form 10-K for the year ended September 30, 2018 on file with the U.S. Securities and Exchange Commission (the "SEC"). Information and footnote disclosures normally included in financial statements have been condensed or omitted in these condensed consolidated financial statements pursuant to the rules and regulations of the SEC and GAAP. These condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented.

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 its 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.

Adoption of New Revenue Standard

On October 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09" or "Topic 606") using the modified retrospective method. See Note 3: "Recent Accounting Pronouncements" for more information. To conform to Topic 606, the Company modified its revenue recognition policy as described below.

Revenue Recognition

The Company recognizes revenue when the service is provided under its capacity purchase agreements. Under these agreements, the major airline partners generally pay a fixed monthly minimum amount per aircraft, plus certain additional amounts based upon the number of flights and block hours flown. The contracts also include reimbursement of certain 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, the capacity purchase agreement provides that United will reimburse the Company for heavy airframe and engine maintenance, landing gear, APUs and component maintenance. The Company also receives compensation under its capacity purchase 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 a profit margin, 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 capacity purchase agreements. At the end of each period during the term of an agreement, the Company calculates the incentives achieved during that period and recognizes revenue attributable to the agreement during the period accordingly, subject to the variable constraint guidance under Topic 606. All revenue recognized under these contracts is presented as the gross amount billed to the major airline partners.

Under the capacity purchase agreements, 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 are deemed to be distinct and the flight service promised in the capacity purchase 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 flights and block 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 their 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. 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 condensed consolidated statements of operations. The Company recognized $55.0 million and $54.0 million of lease revenue for the three months ended March 31, 2019 and 2018, respectively, and $109.9 million and $108.5 million of lease revenue for the six months ended March 31, 2019 and 2018, respectively. The Company has not separately stated aircraft rental income and aircraft rental expense in the condensed consolidated statements of operations because the use of the aircraft is not a separate activity of the total service provided.

The Company's capacity purchase agreements are renewable periodically and contain provisions pursuant to which the parties could terminate their respective agreements, subject to certain conditions as described in Note 1. The capacity purchase agreements also contain terms with respect to covered aircraft, services provided and compensation as described in Note 1. The capacity purchase 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 capacity purchase agreements, 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 airline 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 ASC 606 constraint.

The Company's capacity purchase agreements contain an option that allows its major airline partners to assume the contractual responsibility for procuring and providing the fuel necessary to operate the flights that it operates for them. Both of the Company's major airline 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. In addition, the Company's major airline 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 airline partners at no cost are presented net in its condensed consolidated financial statements; hence, no amounts are recorded for revenue or expense for these items.

Contract Liabilities

Contract liabilities consist of deferred credits for cost reimbursements from major airline 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 control of services resulting in ratable recognition of revenue over the remaining 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 condensed consolidated balance sheets. The Company's total current and non-current deferred credit balances at March 31, 2019 and September 30, 2018 are $14.7 million and $15.4 million, respectively. The Company recognized $1.4 million and $1.2 million of the deferred credits to revenue in the condensed consolidated statements of operations during the three months ended March 31, 2019 and 2018, respectively, and $2.6 million and $2.2 million during the six months ended March 31, 2019 and 2018, respectively.

Contract Assets

The Company recognizes assets from the costs incurred to fulfill a contract including aircraft painting and 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 condensed consolidated balance sheets. The Company's contract assets balances at March 31, 2019 and September 30, 2018 are $5.0 million and $4.6 million, respectively. Contract cost amortization was $0.6 million and $0.5 million for the three months ended March 31, 2019 and 2018, respectively, and $1.2 million and $1.0 million for the six months ended March 31, 2019 and 2018, respectively.

Use of Estimates

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

Maintenance Expense

The Company operates under a Federal Aviation Administration ("FAA") approved continuous inspection and maintenance program. The Company uses the direct expense method of accounting for its maintenance of regional jet engine overhauls, airframe, landing gear, and normal recurring maintenance wherein the Company recognizes the expense when the maintenance work is completed, or over the repair period, if materially different. For leased aircraft, the Company is subject to lease return provisions that require a minimum portion of the "life" of an overhaul be remaining on the engine at the lease return date. The Company estimates the cost of maintenance lease return obligations and accrues such costs over the remaining lease term when the expense is probable and can be reasonably estimated.

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 air frame 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 $5.2 million and $13.7 million for the three months ended March 31, 2019, and 2018, respectively, of which $(0.4) million and $2.9 million, respectively, was pass-through expense. Engine overhaul expense totaled $9.4 million and $33.1 million for the six months ended March 31, 2019, and 2018, respectively, of which $1.2 million and $5.2 million, respectively, was pass-through expense. Airframe C-check expense totaled $4.7 million and $7.9 million for the three months ended March 31, 2019, and 2018, respectively, of which $0 million and $2.7 million, respectively, was pass-through expense. Airframe C-check expense totaled $6.2 million and $13.5 million for the six months ended March 31, 2019, and 2018, respectively, of which $0 million and $5.7 million, respectively, was pass-through expense.

Recent Accounting Pronouncements

6 Months Ended

Mar. 31, 2019

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

3.	Recent Accounting Pronouncements

In May 2014, the FASB issued ASU ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("Topic 606"). Topic 606 establishes a new recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be entitled in exchange for those goods or services. On October 1, 2018, the Company adopted this ASU using the modified retrospective method. Under the new standard, the Company concluded that, in addition to the aircraft lease, the individual flights are distinct services and the flight services promised in the capacity purchase agreements represent a series of services that should be accounted for as a single performance obligation. Revenue is recognized over time as the flights are completed. The adoption of this ASU did not have an impact on recorded amounts when applied to the opening balance sheet as of October 1, 2018. The adoption did not impact the condensed consolidated financial statements presented other than the disclosures noted in Note 2.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"), which provides guidance related to the classification and measurement of financial instruments. The guidance primarily impacts the accounting for equity investments other than those accounted for using the equity method of accounting, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The accounting for other financial instruments, such as loans, investments in debt securities and financial liabilities is largely unchanged. The guidance is effective for fiscal years beginning after December 15, 2017 with early adoption permitted. The Company has adopted ASU 2016-01 effective October 1, 2018; the adoption of this standard did not have a material impact on the financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which was subsequently amended and clarified and provides guidance requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for substantially all leases, with the exception of short-term leases. Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the statement of income. The guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its condensed consolidated financial statements.

In March of 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). With this standard, all excess tax benefits and tax deficiencies are required to be recognized as income tax benefit or expense in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company adopted ASU 2016-09 in the first quarter of the year ended September 30, 2018. This change in accounting principle has been applied on a modified retrospective transition method by means of a cumulative effect adjustment to equity as of the beginning of fiscal year 2018 as a cumulative-effect adjustment increasing deferred tax assets by $0.4 million, increasing income tax expense by $0.3 million, and increasing retained earnings by $0.7 million. Adoption of ASU 2016-09 did not have any other material effect on the Company's results of operations, financial position or cash flows.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force), which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company adopted the standard effective October 1, 2018; the adoption of this standard did not have a material impact on the financial statements.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force), that requires restricted cash and cash equivalents to be included with cash and cash equivalents on the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company adopted the standard effective October 1, 2018 and modified the presentation to include changes in restricted cash in the Company's Condensed Consolidated Statement of Cash Flows.

Concentrations

6 Months Ended

Mar. 31, 2019

Risks And Uncertainties [Abstract]

Concentrations

4.	Concentrations

At March 31, 2019, the Company had capacity purchase agreements with American and United. All of the Company's condensed consolidated revenue for the six months ended March 31, 2019 and 2018 and accounts receivable at March 31, 2019 and September 30, 2018 was derived from these agreements. The terms of both the American and United capacity purchase agreements are not aligned with the lease obligations on the aircraft performing services under such agreements.

Amounts billed by the Company under capacity purchase agreements are subject to the Company's interpretation of the applicable capacity purchase agreement and are subject to audit by the Company's major airline partners. Periodically, the Company's major airline 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 airline partner. As such, the Company periodically reviews amounts past due and records a reserve for amounts estimated to be uncollectible. The allowance for doubtful accounts was $1.4 million and $1.3 million at March 31, 2019 and September 30, 2018, respectively. If the Company's ability to collect these receivables and the financial viability of its partners is materially different than estimated, the Company's estimate of the allowance could be materially impacted.

American accounted for approximately 55% and 54% of the Company's total revenue for the three months ended March 31, 2019 and 2018, respectively, and 54% for the six months ended March 31, 2019 and 2018. United accounted for approximately 45% and 46% of the Company's revenue for the three months ended March 31, 2019 and 2018, respectively, and 46% for the six months ended March 31, 2019 and 2018. 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

6 Months Ended

Mar. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

5.	Intangible Assets

Information about the intangible assets of the Company at March 31, 2019 and September 30, 2018, were as follows (in thousands):

	March 31,			September 30,
	2019			2018
Customer relationship	$	43,800		$	43,800
Accumulated amortization		(33,363	)		(32,459	)
	$	10,437		$	11,341

Total amortization expense recognized was approximately $0.5 million and $0.1 million for the three months ended March 31, 2019 and 2018, respectively, and $0.9 million and $0.2 million for the six months ended March 31, 2019 and 2018, respectively. The Company expects to record amortization expense of $0.9 million for the remainder of 2019, and $1.5 million, $1.2 million, $1.0 million, $0.9 million for fiscal years 2020, 2021, 2022, and 2023 respectively.

Balance Sheet Information

6 Months Ended

Mar. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Balance Sheet Information

6.	Balance Sheet Information

Certain significant amounts included in the Company's condensed consolidated balance sheet as of March 31, 2019 and September 30, 2018, consisted of the following (in thousands):

	March 31,			September 30,
	2019			2018
Expendable parts and supplies, net:
Expendable parts and supplies	$	22,802		$	18,907
Less: obsolescence and other		(3,573	)		(3,249	)
	$	19,229		$	15,658

Prepaid expenses and other current assets:
Prepaid aircraft rent	$	36,736		$	30,267
Unutilized manufacturer credits		3,000			4,500
Deferred offering and reimbursed costs		2,242			1,945
Other		5,473			4,202
	$	47,451		$	40,914
Property and equipment, net:
Aircraft and other flight equipment substantially pledged	$	1,522,750		$	1,502,940
Other equipment		4,631			3,721
Leasehold improvements		2,836			2,754
Vehicles		898			692
Building		699			699
Furniture and fixtures		287			287
Total property and equipment		1,532,101			1,511,093
Less: accumulated depreciation		(294,486	)		(260,264	)
	$	1,237,615		$	1,250,829

Other accrued expenses:
Accrued property taxes	$	5,415		$	6,981
Accrued interest		4,922			6,118
Accrued vacation		5,596			5,470
Accrued wheels, brakes and tires		2,479			1,452
Other		8,932			9,675
	$	27,344		$	29,696

Depreciation expense totaled approximately $18.8 million and $15.6 million for the three months ended March 31, 2019 and 2018, respectively, and $36.9 million and $31.4 million for the six months ended March 31, 2019 and 2018, respectively.

The Company recorded amortization of the unfavorable lease liability for approximately $1.5 million and $1.7 million for the three months ended March 31, 2019 and 2018, respectively, and $3.1 million and $3.4 million for the six months ended March 31, 2019 and 2018, respectively, as a reduction to lease expense.

Fair Value Measurements

6 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

7.	Fair Value Measurements

The carrying values reported in the condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value because of the immediate or short-term maturity of these financial instruments. Marketable securities are reported at fair value based on market quoted prices in the condensed consolidated balance sheets.

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 thousands):

	March 31, 2019				September 30, 2018
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Long-term debt, including current maturities⁽¹⁾	$	857,841	$	864,609	$	930,207	$	926,229

⁽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 and Other Borrowings

6 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Long-Term Debt and Other Borrowings

8.	Long-Term Debt and Other Borrowings

Long-term debt as of March 31, 2019 and September 30, 2018, consisted of the following (in thousands):

	March 31,			September 30,
	2019			2018
Notes payable to financial institution, collateralized by the underlying
aircraft, due 2019⁽¹⁾⁽²⁾	$	—		$	4,428
Notes payable to financial institution, collateralized by the underlying
aircraft, due 2022⁽³⁾⁽⁴⁾		59,176			69,340
Notes payable to financial institution, collateralized by the underlying
aircraft, due 2024⁽⁵⁾		66,565			72,438
Senior and subordinated notes payable to secured parties, collateralized
by the underlying aircraft, due 2027⁽⁶⁾		116,790			122,591
Notes payable to secured parties, collateralized by the underlying
aircraft, due 2028⁽⁷⁾		200,322			209,240
Senior and subordinated notes payable to secured parties, collateralized
by the underlying aircraft, due 2028⁽⁸⁾		160,170			167,269
Senior and subordinated notes payable to secured parties, collateralized
by the underlying aircraft, due 2022⁽¹⁷⁾		83,724			95,060
Notes payable to financial institution, collateralized by the underlying
equipment, due 2022⁽⁹⁾	—				88,162
Senior and subordinated notes payable to secured parties, collateralized
by the underlying aircraft, due 2022⁽¹⁰⁾		55,473			63,403
Notes payable to financial institution, collateralized by the underlying
equipment, due 2020⁽¹¹⁾		2,488			3,318
Notes payable to financial institution due 2020⁽¹²⁾		3,344			4,360
Notes payable to financial institution, collateralized by the underlying
equipment, due 2020⁽¹³⁾		10,723			14,971
Notes payable to financial institution due 2019⁽¹⁴⁾		1,369			5,896
Working capital draw loan, collateralized by certain flight equipment
and spare parts⁽¹⁵⁾		—			—
Other obligations due to financial institution, collateralized by the underlying
equipment, due 2023⁽¹⁶⁾		9,144			9,731
Notes payable to financial institution, collateralized by the underlying
equipment, due 2024⁽¹⁸⁾		88,553			—
Total long-term debt		857,841			930,207
Less current portion		(147,114	)		(155,170	)
Less unamortized debt issuance costs		(13,871	)		(14,860	)
Long-term debt—excluding current portion	$	696,856		$	760,177

⁽¹⁾	In fiscal 2005, the Company financed five CRJ-900 aircraft with $118.0 million in debt. The debt bears interest at the monthly London Inter-bank Offered Rate ("LIBOR"), plus 3.00% and requires monthly principal and interest payments.

⁽²⁾	In fiscal 2004, the Company financed five CRJ-700 and nine CRJ-900 aircraft with $254.7 million in debt. The debt bears interest at the monthly LIBOR plus 3.00% and requires monthly principal and interest payments.

⁽³⁾	In fiscal 2007, the Company financed three CRJ-900 and three CRJ-700 aircraft for $120.3 million. The debt bears interest at the monthly LIBOR plus 2.25% (4.745% at March 31, 2019) and requires monthly principal and interest payments.

⁽⁴⁾	In fiscal 2014, the Company financed 10 CRJ-900 aircraft for $88.4 million. The debt bears interest at the monthly LIBOR plus a spread ranging from 1.95% to 7.25% (4.445% to 9.745% at March 31, 2019) and requires monthly principal and interest payments.

⁽⁵⁾	In fiscal 2014, the Company financed eight CRJ-900 aircraft with $114.5 million in debt. The debt bears interest at 5.00% and requires monthly principal and interest payments.

⁽⁶⁾

In fiscal 2015, the Company financed seven CRJ-900 aircraft with $170.2 million in debt. The senior notes payable of $151.0 million bear interest at monthly LIBOR plus 2.71% (5.205% at March 31, 2019) and require monthly principal and interest payments. The subordinated notes payable are noninterest-bearing and become payable in full on the last day of the term of the notes. The Company has imputed an interest rate of 6.25% on the subordinated notes payable and recorded a related discount of $8.1 million, which is being accreted to interest expense over the term of the notes.

⁽⁷⁾	In fiscal 2016, the Company financed 10 E-175 aircraft with $246.0 million in debt under an EETC financing arrangement (see discussion below). The debt bears interest ranging from 4.75% to 6.25% and requires semi-annual principal and interest payments.

⁽⁸⁾

In fiscal 2016, the Company financed eight E-175 aircraft with $195.3 million in debt. The senior notes payable of $172.0 million bear interest at the three-month LIBOR plus a spread ranging from 2.20% to 2.32% (4.800% to 4.920% at March 31, 2019) and require quarterly principal and interest payments. The subordinated notes payable bear interest at 4.50% and require quarterly principal and interest payments.

⁽⁹⁾	In fiscal 2017, the Company financed certain flight equipment with $99.1 million in debt. The debt bears interest at the monthly LIBOR (rounded to the nearest 16th) plus 7.25% (9.745% at March 31, 2019) and requires monthly principal and interest payments.

⁽¹⁰⁾

In December 2017, the Company refinanced nine CRJ-900 aircraft with $74.9 million in debt. The senior notes payable of $46.9 million bear interest at the three-month LIBOR plus 3.50% (6.100% at March 31, 2019) and require quarterly principal and interest payments. The subordinated notes payable bear interest at the three-month LIBOR plus 4.50% (7.100% at March 31, 2019) and require quarterly principal and interest payments.

⁽¹¹⁾	In fiscal 2015, the Company financed certain flight equipment with $8.3 million in debt. The debt bears interest at 5.163% and requires monthly principal and interest payments.

⁽¹²⁾	In fiscal 2015 and 2016, the Company financed certain flight equipment maintenance costs with $10.2 million in debt. The debt bears interest at the monthly LIBOR plus 3.07% (5.670% at March 31, 2019) and requires quarterly principal and interest payments.

⁽¹³⁾

In fiscal 2016 and 2017, the Company financed certain flight equipment maintenance costs with $11.9 million in debt. The debt bears interest at the three-month LIBOR plus a spread ranging from 2.93% to 2.96% (5.530% to 5.560% at March 31, 2019) and requires quarterly principal and interest payments. The debt is subject to a fixed charge ratio covenant. As of March 31, 2019, the Company was in compliance with this covenant.

⁽¹⁴⁾

In fiscal 2017, the Company financed certain flight equipment maintenance costs with $25 million in debt. The debt bears interest at the three-month LIBOR plus 3.30% (5.900% at March 31, 2019) and requires quarterly principal and interest payments. The debt is subject to a fixed charge ratio covenant. As of March 31, 2019, the Company was in compliance with this covenant.

⁽¹⁵⁾

In fiscal 2016, the Company obtained a $35.0 million working capital draw loan, which terminates in August 2019. Interest is assessed on drawn amounts at one-month LIBOR plus 4.25% (6.745% at March 31, 2019). As of March 31, 2019, there were no borrowings outstanding under this facility. The working capital draw loan is subject to an interest and rental coverage ratio covenant. As of March 31, 2019, the Company was in compliance with this covenant.

⁽¹⁶⁾	In February 2018, the Company leased two spare engines. The leases were determined to be capital as the leases contain a bargain purchase option at the end of the term. Imputed interest is 9.128% and the leases requires monthly payments.

⁽¹⁷⁾

In June 2018, the Company refinanced six CRJ-900 aircraft with $27.5 million in debt and financed nine CRJ-900 aircraft, which were previously leased, with $69.6 million in debt. The senior notes payable of $67.3 million bear interest at the three-month LIBOR plus 3.50% (6.100% at March 31, 2019) and require quarterly principal and interest payments. The subordinated notes payable bear interest at three month LIBOR plus 7.50% (10.100% at March 31, 2019) and require quarterly principal and interest payments.

⁽¹⁸⁾	In January 2019, the Company financed certain flight equipment with $91.2 million in debt. The debt bears interest at the monthly LIBOR plus 3.10% (5.595% at March 31, 2019) and requires monthly principal and interest payments.

Principal maturities of long-term debt as of March 31, 2019, and for each of the next five years are as follows (in thousands):

	Total Principal
Periods Ending September 30,	Amount
Remainder of 2019	$	74,450
2020		146,227
2021		141,519
2022		132,705
2023		88,122
Thereafter		274,818
	$	857,841

The net book value of collateralized aircraft and equipment as of March 31, 2019 was $1,125.9 million.

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 March 31, 2019 Mesa has $200.3 million of equipment notes outstanding issued under the EETC financing included in long-term debt on the condensed 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 does not have a variable interest in the pass-through trust, and therefore, has not consolidated the pass-through trust with its financial statements.

On June 27, 2018, the Company refinanced $16.0 million of debt on six CRJ-900 aircraft with $27.5 million of debt, resulting in net cash proceeds to the Company of $10.4 million after transaction related fees. The notes payable require quarterly payments of principal and interest through fiscal 2022 bearing interest at LIBOR plus 3.50%.

On June 28, 2018, the Company purchased nine CRJ-900 aircraft, which were previously leased under its aircraft lease facility with Wells Fargo Bank Northwest, National Association, as owner trustee and lessor (the "GECAS Lease Facility"), for $76.5 million. The Company financed the aircraft purchase with $69.6 million in new debt and proceeds from the June 2018 refinancing of six CRJ-900 aircraft. The notes payable of $69.6 million require quarterly payments of principal and interest through fiscal 2022 bearing interest at LIBOR plus a spread ranging from 3.50% for the senior promissory notes to 7.50% for the subordinated promissory notes. The Company recorded non-cash lease termination expense of $15.1 million in connection with the lease buyout. Also, as part of the transaction, the Company (i) received $4.5 million of future goods and services credits and $5.6 million of loan forgiveness for loans with a maturity date in 2027 from the aircraft manufacturer, and (ii) mutually agreed with GE Capital Aviation Services LLC to terminate the GE Warrant to purchase 250,000 shares of common stock.

On August 14, 2018 the Company paid down the outstanding balance on the CIT Revolving Credit Facility of $25.7 million.

On January 28, 2019, the Company entered into a Term Loan Agreement (the "Term Loan") pursuant to which the lenders thereunder committed to lend to the Company term loans in the aggregate principal amount of $91.2 million. Borrowings under the Term Loan bear interest at LIBOR plus 3.10%. This interest rate is significantly lower than the interest rate under the Company's Spare Engine Facility (defined below), which the Term Loan refinanced and replaced. The Spare Engine Facility accrued interest at LIBOR plus 7.25%. The Term Loan has a term of five years, with principal and interest payments due monthly over the term of the loan in accordance with an amortization schedule. The Company recorded a loss on extinguishment of debt of $3.6 million, due to a $1.9 million write-off of financing fees and $1.7 million in prepayment penalties, in connection with the repayment of the Spare Engine Facility.

Earnings Per Share and Equity

6 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share and Equity

9.	Earnings Per Share and Equity

Calculations of net income per common share attributable to Mesa Air Group were as follows (in thousands, except per share data):

	Three Months Ended March 31,				Six Months Ended March 31,
	2019		2018		2019		2018
Net income attributable to Mesa Air Group	$	13,249	$	2,372	$	32,330	$	24,996
Basic weighted average common shares outstanding		34,699		23,282		34,607		23,279
Add: Incremental shares for:
Dilutive effect of warrants		—		98		—		97
Dilutive effect of restricted stock		263		190		434		154
Diluted weighted average common shares outstanding		34,962		23,570		35,041		23,530
Net income per common share attributable to Mesa Air Group:
Basic	$	0.38	$	0.10	$	0.93	$	1.07
Diluted	$	0.38	$	0.10	$	0.92	$	1.06

Basic income per common share is computed by dividing net 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 income or loss 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. There were no anti-dilutive shares relating to restricted stock and exercise of warrants that were excluded from the calculation of diluted loss per share for the three months and six months ended March 31, 2019 and 2018.

Restatement

Basic and Diluted Net Income per Common Share Available to Common Shareholders for the Three Months and Six Months Ended March 31, 2018

Subsequent to the issuance of the Company’s condensed consolidated financial statements for the three months ended December 31, 2018, we determined our previously issued condensed consolidated financial statements included warrants with a nominal conversion price in diluted income per common share available to common shareholders, however, they should have been included in basic income per common share available to common shareholders. Since diluted shares are under the treasury stock method, diluted income per common share available to common shareholders was impacted by this change. As a result, basic and diluted income per common share available to common shareholders for the periods ended March 31, 2018 have been restated to appropriately include the warrants with a nominal conversion price in basic income per common share available to common shareholders.

The restatement adjustment did not impact our previously reported consolidated balance sheet, consolidated statements of stockholders’ equity, consolidated statements of cash flows, or net income (in thousands, except per share data).

	Three Months Ended March 31, 2018				Six Months Ended March 31, 2018
	As Previously Reported		As Restated		As Previously Reported		As Restated
Net income per common share available to common shareholders - Basic	$	0.20	$	0.10	$	2.18	$	1.07
Shares used in computing net income per common share available to common shareholders - Basic		11,592		23,282		11,441		23,279
Net income per common share available to common shareholders - Diluted	$	0.10	$	0.10	$	1.06	$	1.06
Shares used in computing net income per common share available to common shareholders - Diluted		23,563		23,570		23,563		23,530

Common Stock

6 Months Ended

Mar. 31, 2019

Stockholders Equity Note [Abstract]

Common Stock

10.	Common Stock

The Company previously issued warrants to third parties, which had a five-year term to be converted to common stock at an exercise price of $0.004 per share. Certain persons who are not U.S. citizens currently hold outstanding warrants to purchase shares of the Company's common stock. The warrants are exercisable if consistent with federal law, which requires that no more than 24.9% of the Company's stock be voted, directly or indirectly, or controlled by persons who are not U.S. citizens. The warrants can be converted to common stock upon warrant holders demonstrating U.S. citizenship or if consistent with above described federal law ownership limitations. In June 2018, the Company and holders agreed to extend the term of outstanding warrants set to expire by five years (through fiscal year 2023).

On June 28, 2018, the Company agreed with GE Capital Aviation Services LLC ("GE Capital") to terminate a warrant to purchase 250,000 shares of common stock held by GE Capital.

In July 2018, the Company's Board of Directors and Compensation Committee approved the issuance of shares of restricted common stock under its 2018 Equity Incentive Plan (the "2018 Plan") immediately following completion of the Company's IPO to certain of its employees and directors in exchange for the cancellation of existing restricted phantom stock units, unvested restricted shares and SARs. The shares of restricted common stock issued under the 2018 Plan in exchange for the cancellation of restricted phantom stock units, unvested restricted shares and SARs are subject to vesting on the same terms set forth in the prior vesting schedules and are not subject to acceleration in connection with the 2018 Plan issuances.

The Company's shares of common stock were listed on The NASDAQ Global Select Market under the symbol "MESA" effective August 10, 2018. On August 14, 2018, the Company completed its IPO, in which it issued and sold 9,630,000 shares of common stock, no par value, at a public offering price of $12.00 per share (the "Firm Shares"). Additionally, in connection with the IPO, the Company granted the underwriters an option to purchase up to an additional 1,444,500 shares of common stock at the same price. On September 11, 2018, the Company closed the sale of 1,344,500 shares ("Option Shares") of its common stock, in connection with the partial exercise of the overallotment option granted to the underwriters in its IPO. Of the 1,344,500 Option Shares sold, 723,985 were purchased directly from the Company and the remaining 620,515 shares were purchased directly from the selling shareholders. The Firm Shares and Option Shares were sold to the public for a price of $12.00 per share. The aggregate gross proceeds to us from the IPO were approximately $124.2 million. The Company received $111.7 million in net proceeds after deducting $8.7 million of underwriting discounts and commissions and $3.8 million in offering costs.

The Company has not historically paid dividends on shares of its common stock. Additionally, the Company's aircraft lease facility (the "RASPRO" Lease Facility) with RASPRO Trust 2005, a pass-through trust and its aircraft lease facility with Wells Fargo Bank Northwest, National Association, as owner trustee and lessor (the "GECAS Lease Facility") each contain restrictions that limit the Company's ability to or prohibit it from paying dividends to holders of its common stock.

Income Taxes

6 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

11.	Income Taxes

The Company's effective tax rate (ETR) from continuing operations was 23.6% and 23.7% for the three months and six months ended March 31, 2019, respectively, and 20.4% and (555.2)% for the three months and six months ended March 31, 2018, respectively. The Company’s ETR during the three months and six months ended March 31, 2019 were different from the federal statutory rate of 21% as a result of the vesting and exercise of stock options, state taxes, and changes in the valuation allowance against state net operating losses.

The Company’s ETR during the six months ended March 31, 2018 was significantly different than the statutory tax rate primarily as a result of the comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act") enacted by the U.S. government on December 22, 2017. The Tax Act made broad and complex changes to the U.S. tax code that affected the Company's fiscal year ended September 30, 2018, including but not limited to (1) reducing the U.S. federal corporate tax rate, (2) changing rules related to uses and limitations of NOL carryforwards created in tax years beginning after December 31, 2017, (3) eliminating the corporate alternative minimum tax ("AMT") and changing how existing AMT credits can be realized, and (4) altering bonus depreciation rules that will allow for full expensing of qualified property. As a result of the reducing the U.S. federal corporate tax rate, we recorded a decrease to our net deferred tax liabilities. We had a blended U.S. federal tax rate of 24.5% for the year ended September 30, 2018 based on the applicable tax rates before and after the Tax Act and the number of days in the year.

As of September 30, 2018, the Company had aggregate federal and state net operating loss carryforwards of approximately $415.1 million and $199.6 million, respectively, which expire in 2027-2037 and 2019-2038, respectively. Approximately $0.9 million of state net operating loss carryforwards are expiring in 2019.

Share-Based Compensation and Stock Repurchases

6 Months Ended

Mar. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation and Stock Repurchases

12.	Share-Based Compensation and Stock Repurchases

Restricted Stock

The restricted stock activity for the six months ended March 31, 2019 were summarized as follows:

				Weighted-
				Average
	Number			Grant Date
	of Shares			Fair Value
Restricted shares unvested at September 30, 2018		1,250,625		$	9.59
Granted		49,000			9.35
Vested		(284,846	)