Company Announcements

PHOENIX, June 05, 2024 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) (“Mesa” or the “Company”) today provided additional detail around its holdings in XTI Aerospace, Inc. (“XTI Aerospace”), which is developing the TriFan 600, a unique, fixed-wing vertical lift crossover airplane (VLCA) that can take off and land like a helicopter and is configurable to transport up to six passengers.

XTI Aerospace began publicly trading on the Nasdaq (symbol: XTIA) on March 13, 2024, following the closing of the merger between XTI Aircraft Company ("XTI") and Inpixon, a provider of real-time location systems, on March 12, 2024 (the “Merger”). In connection with the closing of the Merger, Mesa received 283,734 shares of XTI Aerospace common stock upon exercising certain warrants for XTI common stock (the “XTI Warrants”) that were assumed by XTI Aerospace in the Merger.

Mesa initially received the XTI Warrants in February 2022 in connection with entering into an Aircraft Purchase Agreement with XTI for 100 TriFan 600 aircraft. Mesa’s obligations under the Aircraft Purchase Agreement are subject to customary conditions for transactions of this nature, including FAA certification of the aircraft and future agreement between the parties on a number of terms and conditions, which may or may not be met. Mesa currently holds warrants to purchase another 189,156 shares of XTI Aerospace common stock, which are subject to certain vesting milestones.

“We are pleased to support XTI Aerospace as it seeks to bring an unprecedented level of versatility to commercial and private aviation,” said Jonathan Ornstein, Mesa Chairman and CEO. “Passengers in urban environments and smaller or rural communities across the United States that Mesa had served historically have been relatively disadvantaged by larger jets, which need substantial infrastructure and obligate passengers to find last-several-miles’ transportation, and by other expensive options like helicopters, which are limited by the distances, speeds, and altitudes that they can fly. One opportunity of particular interest is the Essential Air Service markets, in which Mesa was a large participant. XTI Aerospace is working on not just a future solution, but one that is expected to be more efficient than existing business-jet or vertical take-off-and-landing (VTOL) alternatives.”

The TriFan 600 platform would be capable of vertical takeoff, conventional runway takeoff, or short runway takeoff, enabling it to operate from helipads, airports, or any improved surface without new infrastructure or airspace regulations. With a vertical takeoff and landing, the TriFan 600 is expected to have a range of 700 miles, twice the range of most helicopters and seven times the range of most battery-only VTOL aircraft under development. The TriFan 600 is projected to cruise at 345 miles per hour, powered by two turboshaft engines that can be operated on 100% sustainable aviation fuel. XTI Aerospace will continue to evaluate hybrid-electric or all-electric propulsion as the technology matures, regulations are defined, and charging infrastructure develops.

“Our position in XTIA enhances our commitment to the next wave of innovation in the regional aviation industry,” Ornstein said. “We look forward to providing the XTI Aerospace team with our understanding of regional and local air markets and knowledge of commercial aviation dynamics.”

Ornstein continued, “Along with XTI Aerospace, we are pleased with our holdings in Archer Aviation, Inc. and Heart Aerospace Incorporated and in ventures like REGENT and Elroy Air. Mesa is proud to be an early investor in these companies as they gain momentum with customers, regulators, and the investment community and achieve milestones toward commercialization.”

About Mesa Air Group, Inc.

Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 79 cities in 36 states, the District of Columbia, Canada, Cuba, and Mexico. As of March 31, 2024, Mesa operated a fleet of 80 aircraft, with approximately 263 daily departures. The Company had approximately 2,110 employees. Mesa operates all its flights as United Express pursuant to the terms of a capacity purchase agreement entered into with United Airlines, Inc.

Forward-Looking Statements

This press release includes information that constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “might”, “will”, “should”, “can have”, “likely” and similar expressions are used to identify forward-looking statements. These forward-looking statements are based on the Company’s current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to the Company. By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements. For additional information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to the Company’s filings with the SEC, including the risk factors contained in its most recent Annual Report on Form 10-K and the Company’s other subsequent filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.

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