Mesa Air Group Stock Price, News & Analysis

Republic Airways Holdings and Mesa Air Group (NASDAQ: MESA) have announced a definitive merger agreement to create America's leading regional airline in an all-stock transaction. The combined entity will operate under the name Republic Airways Holdings Inc. with the ticker symbol 'RJET' on NASDAQ.

The merger will unite a fleet of approximately 310 Embraer 170/175 aircraft, operating over 1,250 daily departures. Republic shareholders will own 88% of the combined company, while Mesa shareholders will own between 6-12% based on pre-closing criteria. The transaction is expected to close in late Q3 or early Q4 2025.

The combined company is projected to generate revenues of approximately $1.9 billion, with pretax margins of 7-9% and adjusted EBITDA exceeding $320 million. The merger will maintain existing partnerships with American Airlines, Delta Air Lines, and United Airlines, with Mesa's operations supporting United under a new 10-year capacity purchase agreement.

Mesa Air Group (NASDAQ: MESA) has received a notice from Nasdaq's Listing Qualifications Department on February 21, 2025, regarding non-compliance with listing requirements. The notice stems from Mesa's delayed filing of both its Q1 2025 Form 10-Q and FY2024 Form 10-K reports.

The company has until March 17, 2025 to submit a compliance plan to Nasdaq. If accepted, Mesa could receive an extension until July 14, 2025 to regain compliance. The filing delay is not related to any financial restatement or auditor disagreements. Currently, the notice does not affect Mesa's listing status on the Nasdaq Capital Market.

Mesa Air Group (NASDAQ: MESA) announced receiving a notice from Nasdaq on January 15, 2025, indicating non-compliance with Listing Rule 5250(c)(1) due to failing to timely file its Annual Report (Form 10-K) for the fiscal year ended September 30, 2024. The notice does not immediately affect Mesa's listing or trading status on the Nasdaq Capital Market.

The company has 60 calendar days to submit a compliance plan to Nasdaq. If accepted, Mesa could receive up to 180 days (until July 14, 2025) to file the Form 10-K. Mesa stated the delay is not due to any financial restatement or auditor disagreement, and expects to file the report before the 60-day notice period expires.

Mesa Air Group (NASDAQ: MESA) announced plans to significantly increase daily aircraft utilization rates starting January 2025. The company will increase from 8.9 block hours per day in Q4 2024 to 9.5 block hours per day in Q1 2025, representing a 7% increase. By March 2025, utilization is expected to reach 9.8 block hours per day, a 10% increase from Q4 2024.

The improved utilization stems from reduced attrition across work groups, optimized scheduling, and better operational performance, with only one controllable cancellation in Q4 2024. The company plans to recall furloughed pilots beginning January 2025. While still below pre-Covid levels, this increase is expected to generate additional revenue and improve operating results and cash flow.

Mesa Air Group reported Q3 fiscal 2024 results with total operating revenues of $110.8 million, an 8.0% increase in United Express contract revenue year-over-year. The company reported a pre-tax loss of $20.7 million and a net loss of $19.9 million, or $(0.48) per diluted share. Adjusted net loss was $9.4 million, or $(0.23) per diluted share.

Key updates include:

• Extended increased block-hour rate on E-175 flying with United through August 31, 2025
• Agreed to transition fleet to all E-175s by March 1, 2025
• Entered agreements to sell 23 CF34-8C engines for $33.5 million
• Generated $9.6 million from sale of Archer Aviation shares

Mesa ended the quarter with $16.3 million in unrestricted cash and $366.4 million in total debt.

Mesa Air Group (NASDAQ:MESA) has received a notice from Nasdaq on August 16, 2024, stating that the company is not in compliance with Nasdaq Listing Rule 5250(c)(1) due to the late filing of its Quarterly Report on Form 10-Q for the period ended June 30, 2024. The notice does not immediately affect Mesa's listing or trading on the Nasdaq Capital Market.

Mesa has 60 calendar days to submit a compliance plan to Nasdaq. If accepted, Nasdaq may grant up to 180 calendar days (until February 10, 2025) for Mesa to file the Form 10-Q. The company is working to complete and file the Form 10-Q well before the 60-day notice period to regain compliance. The filing delay is not due to any financial restatement or auditor disagreement.

Mesa Air Group (NASDAQ: MESA) announced the furlough of 12 pilots and the deferral of training for 41 pilot trainees, effective July 12, 2024. This decision stems from a significant reduction in pilot attrition. The company expects to save approximately $750,000 monthly in operating expenses. Jonathan Ornstein, Mesa's Chairman and CEO, noted that the decline in attrition is partly due to a hiring slowdown across airlines and the increased availability of pilots meeting the FAA's 1,500-hour requirement. Despite the furloughs, Mesa anticipates an increase in Embraer-175 block hours with United and plans to start recalling pilots by year-end.