Mesa Air Group Announces No Furloughs in 2020

Rhea-AI Summary

Mesa Air Group, Inc. (NASDAQ: MESA) has successfully reached an agreement with its pilots, represented by the Air Line Pilots Association, allowing the company to avoid furloughing employees through the end of 2020. Despite the significant impact of COVID-19 on air travel, the company values its strong employee relationships and has worked diligently to prevent furloughs following the expiration of the CARES Act Payroll Support Program. Mesa is hopeful for a congressional extension of the Payroll Support Program to further protect employees amid ongoing travel demand challenges.

Positive

• Agreement with pilots prevents furloughs through 2020.
• Strong employee relations showcased during a challenging time.
• Commitment to community and employee support highlighted by leadership.

Negative

• Continued uncertainty in air travel demand due to COVID-19.
• Dependence on potential congressional support for employee protection.

PHOENIX, Oct. 02, 2020 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) is pleased to announce the company has reached an agreement with its pilots, represented by the Air Line Pilots Association, that will enable the company to avoid furloughing any employee for the remainder of 2020, despite the tremendous impact of the COVID-19 pandemic on air travel.  

Mesa takes great pride in the strong relationship the company has with its employees, and significant work has been done over the last several months to avoid any furloughs associated with the expiration of the CARES Act Payroll Support Program funds on September 30th.  

Commenting on the announcement, Mesa Air Group Chairman and CEO Jonathan Ornstein said, “We like to think of Mesa as a big extended family. In times of crisis, families pull together and I’m incredibly grateful for the dedication, hard work, and bravery of our people. Their willingness to support their fellow employees through this incredibly difficult time is a real testament to their kindness and humanity.”

The company remains hopeful Congress will extend the Payroll Support Program to further protect its employees and their families should the pandemic continue to have a negative impact on air travel demand into 2021.

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 and cargo service to 102 cities in 39 states, the District of Columbia and Mexico. As of September 30th, 2020, Mesa operated a fleet of 145 aircraft with approximately 373 daily departures and 3,400 employees. Mesa operates all of its flights as either American Eagle or United Express flights pursuant to the terms of capacity purchase agreements entered into with American Airlines, Inc. and United Airlines, Inc.

Investor Relations
Brian Gillman
Investor.Relations@mesa-air.com 

Media
Jack Hellie
Media@mesa-air.com 

FAQ

What agreement did Mesa Air Group reach with its pilots?

Mesa Air Group reached an agreement with its pilots to avoid furloughing employees for the remainder of 2020.

How has the COVID-19 pandemic impacted Mesa Air Group?

The COVID-19 pandemic has significantly affected air travel, but Mesa has managed to avoid furloughs through pilot agreements.

What is the current status of Mesa Air Group's workforce?

Mesa Air Group has successfully prevented any workforce furloughs for 2020 due to its agreement with the pilots.

What does Mesa Air Group hope for regarding the Payroll Support Program?

Mesa hopes Congress will extend the Payroll Support Program to further protect its employees as travel demand remains uncertain.