Mesa Air ends fiscal year with big losses as new partnership with United takes shape - Phoenix Business Journal

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Starting in March, Mesa Air will begin its shift away from operating regional flights for American Airlines and work only with United Airlines going forward. phoenix

Phoenix-based Mesa Air Group Inc. said Thursday it lost $115.6 million in the fourth quarter of fiscal 2022, but the company also made public a series of agreements it signed in the past month aimed at increasing its liquidity and improving its financial position.

Since the fiscal year ended, Mesa has had several of developments that will impact it financially and operationally, some of which the company disclosed Thursday afternoon.Earlier this month, Mesa announced it would wind down its current contract as a regional carrier for American Airlines and as of April 2023, Mesa will. According to documents filed with the SEC on Thursday, Mesa has finalized an agreement with United Airlines to move its regional carrier operations from American to United.

As part of the deal, United said it would increase its pay rates to Mesa and in return, Mesa gave United a seat on its board of directors and a 10% equity position in Mesa.

 

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