Mesa Air Group to Add Five Additional CRJ-900 Aircraft to American CPA

Rhea-AI Summary

Mesa Air Group, Inc. (NASDAQ: MESA) has announced an amendment to its Capacity Purchase Agreement with American Airlines, effective at the start of 2021. The new agreement will allow Mesa to operate an additional five aircraft by March 2021, subject to American Airlines retaining the right to withdraw these aircraft with 60 days' notice. Mesa's COO expressed optimism regarding the partnership, highlighting the company's readiness for future opportunities.

Positive

• Amendment to Capacity Purchase Agreement with American Airlines enhances operational capacity.
• Addition of five incremental aircraft by March 2021 can drive revenue growth.

Negative

• American Airlines can withdraw aircraft with 60 days' notice, introducing operational volatility.

PHOENIX, Dec. 29, 2020 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) today announced that it is amending its new Capacity Purchase Agreement with American Airlines.

The amendment will see Mesa pick up flying at the beginning of 2021 over and above its new CPA levels, increasing to a total of five incremental aircraft by March. American retains the option to withdraw any of these incremental aircraft upon 60 days' prior notice.

"We appreciate the opportunity to add this additional capacity at the request of American Airlines," said Brad Rich, Executive Vice President and Chief Operating Officer. "We remain optimistic about our relationship with American Airlines and are well prepared to respond positively to future opportunities."

About Mesa Airlines

Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 104 cities in 39 states, the District of Columbia, and Mexico as well as cargo services out of Cincinnati/Northern Kentucky International Airport. As of November 30th, 2020, Mesa has a fleet of 157 aircraft with approximately 384 daily departures and 3,200 employees. Mesa operates all of its flights as either American Eagle, United Express, or DHL Express flights pursuant to the terms of capacity purchase agreements entered into with American Airlines, Inc., United Airlines, Inc., and DHL.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the new contract with American Airlines positioning Mesa for long term stability and improved performance on its American operation and the benefits of the new agreement to both parties. All forward-looking statements in this release are made as the date hereof and are based on information available to Mesa as of such date. These forward-looking statements represent the judgment of the Company, as of the date of this release, and the Company disclaims any intent or obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

Investor Relations
Brian Gillman
investor@mesa-air.com

Media
Matthew Harris
media@mesa-air.com

FAQ

What is the new agreement between Mesa Air Group and American Airlines?

Mesa Air Group amended its Capacity Purchase Agreement with American Airlines, allowing for the addition of five aircraft starting in 2021.

How many aircraft will Mesa Air Group add under the new contract?

Mesa Air Group will add five incremental aircraft by March 2021 under the new Capacity Purchase Agreement.

What is the stock symbol for Mesa Air Group?

The stock symbol for Mesa Air Group is MESA.

What is the potential impact of the partnership with American Airlines on MESA stock?

The partnership may enhance revenue potential through increased operational capacity, but it also carries risks due to the possibility of aircraft withdrawal.