Struggling Mesa Airlines reworks United deal and continues selling CRJ900s

Financially struggling Mesa Air Group has reached new agreements with partner United Airlines and continues selling off spare aircraft and engines as the company risks being de-listed from the US stock market. The parent of US regional carrier Mesa Airlines disclosed on 18 January that it has amended its capacity purchase agreement with United to “significantly improve Mesa’s operating income and liquidity”. Under the new agreements, United has increased Mesa’s block-hour rate retroactively to 1 October 2023 and extending through 31 December 2024, which Mesa estimates will generate $63.5m of additional revenue. United has extinguished $12.6m of Mesa’s debt in exchange for that airline’s equity investment in privately held Heart Aerospace, originally purchased for $5m. Mesa also released its investment in publicly traded air taxi developer Archer Aviation as collateral. The Phoenix-based company has also been selling off aircraft in an attempt to firm its financial footing. Since September, Mesa has sold or agreed to sell 29 of its “excess” Bombardier CRJ-900 aircraft and dozens of engines for a combined $198m, which is being used to pay down $174m in debt. CE Jonathan Ornstein says the aircraft sales and agreements with United will generate more contract revenue and increase the company’s margins. <br/>