The regional airline is in the process of merging with Republic Airways.
A Mesa Airlines CRJ-900 in Phoenix. (Photo: Shutterstock | Robin Guess)
Phoenix-based Mesa Air Group, the parent company of regional carrier Mesa Airlines, reported a net loss of $114 million in the first quarter of 2025, according to a financial statement released Monday.
The company’s earnings report showed a decline in operating revenue from $118.8 million in Q1 2024 to $103.2 million in Q1 2025. Contract revenue fell from $101.1 million to $80.7 million over the same period.
The airline attributed the results to a decrease in the number of aircraft it is flying under contract for United as part of its regional airline network, United Express. Mesa recently retired its remaining CRJ-900s and sold several Embraer aircraft to United in an effort to reduce its debt and restructure its fleet solely around the Embraer E175. A net loss on those sales further hurt the carrier’s bottom line.
Also a factor is the termination of a partnership between Mesa and DHL Express in 2024. The deal between the two companies ended one year earlier than expected because of a reduction in cargo demand. Mesa had used three Boeing 737s to transport DHL’s cargo.
In a statement, Mesa Air Group CEO Jonathan Ornstein highlighted the airline’s strong operational performance during the quarter, including a 100% controllable completion rate for the United flights it handles.
Last week, the company reported its fourth-quarter and full-year earnings for 2024, including an adjusted net loss of $23 million for the year. Reduced block hours, fewer aircraft under contract, and the cancellation of the DHL deal were the main causes.
Mesa Air Group is in the process of merging with Republic Airways Holdings, the parent company of Republic Airways, a fellow partner in the United Express network. The all-stock deal was announced in April and would leave Republic shareholders with 88% of the combined company’s common shares. Mesa Air Group shareholders will own a minimum of 6% and up to 12% of the new common shares, depending on Mesa meeting certain requirements before the closing date.
If approved by shareholders and regulators, the tie-up is expected to be completed in the third or fourth quarter of 2025.
The new merged company, which will use the Republic name, will have a fleet of about 310 Embraer 170s and 175s flying 1,250 departures daily.
Republic is currently a partner of United, American, and Delta.
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