Harbor Diversified, Inc. reported a net loss of $9.6 million for the three months ended March 31, 2024, compared to a net loss of $4.9 million for the same period in 2023. The company's operating revenues decreased by 17% to $43.7 million, down from $52.6 million in the prior year, primarily due to a significant reduction in flight operations attributed to an industry-wide pilot shortage. The operating loss for the quarter was $10.9 million, compared to an operating loss of $9.0 million in the previous year. The basic loss per share was $0.23, compared to $0.11 in the prior year.
The decline in revenue was largely driven by a decrease in available seat miles (ASMs), which fell by 29.9% to 176,016, and a 20.4% drop in passenger counts to 478,098. The company attributed these declines to the ongoing pilot shortage, which has limited the number of flights Air Wisconsin can operate. Despite the decrease in revenues, operating expenses also fell by 11.4% to $54.6 million, reflecting reduced flying levels and operational adjustments.
Strategically, Harbor is undergoing a realignment in response to the impending termination of its capacity purchase agreement with American Airlines, effective April 3, 2025. The company is exploring new business opportunities, including expanding charter operations and bidding on federally subsidized Essential Air Service markets. This shift comes after American Airlines became Air Wisconsin's sole airline partner in June 2023, following the termination of its previous agreement with United Airlines.
As of March 31, 2024, Harbor's cash and cash equivalents stood at $16.8 million, with marketable securities valued at $93.3 million. The company reported a decrease in cash used in operations to $1.6 million from $6.7 million in the prior year, indicating improved cash flow management despite the ongoing challenges. However, the company acknowledged significant risks associated with its future liquidity, particularly in light of the anticipated loss of revenue from the American capacity purchase agreement and the need to implement its new business strategy effectively.
About HARBOR DIVERSIFIED, INC.
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