Mesa Air Group swings to 2Q profit on settlement

The company earned $9.4 million, or 29 cents per share, compared with a loss of $24 million, or 75 cents per share, in the year-ago quarter. Analysts expected a loss of 5 cents per share, according to a poll by Thomson Financial.

Excluding one-time gains and losses, the company reported an adjusted loss of $4.1 million, or 15 cents per share. One-time items included a $21 million gain associated with the settlement with Hawaiian Airlines, a $4.5 million gain on a convertible note repurchase, a $1.9 million gain on securities, lease return costs of $3.3 million, $900,000 in startup costs associated with a Chinese joint venture, legal costs of $600,000 and $1.1 million in other expenses.

Revenue rose 8 percent to $320.3 million, from $296.3 million a year earlier.

Mesa in April agreed to pay Hawaiian Airlines Inc. $52.5 million to settle a lawsuit accusing Mesa of improperly using confidential information before entering the inter-island Hawaii market.

Shares fell 1 cent to 47 cents in premarket trading.