Mesa Air and Republic Airways Announce Merger to Strengthen Regional Airline Operations

Mesa Air Group and Republic Airways have agreed to merge in an all-stock deal, aiming to create a stronger regional airline with improved fleet efficiency and crew management.

The combined entity will operate as Republic Airways Holdings Inc., with a fleet of approximately 310 Embraer 170/175 aircraft.

The merger, expected to close in late Q3 or early Q4 of 2025, has not yet disclosed financial terms. Under the agreement:

• Republic shareholders will own 88% of the combined company.

• Mesa shareholders will hold between 6% and 12%, depending on certain pre-closing conditions.

• The new company will remain listed on Nasdaq under the ticker symbol “RJET”.

• The board will consist of six existing Republic directors and one independent Mesa director.

The merger comes as regional airlines face challenges from fluctuating demand and economic uncertainty. The combined company expects to generate $1.9 billion in revenue and over $320 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).

Republic Airways will continue to operate flights for American Airlines, Delta Air Lines, and United Airlines under existing capacity purchase agreements (CPA). Meanwhile, Mesa will support United Airlines under a new 10-year CPA.

Following the announcement, Mesa’s stock surged by 23.8% in premarket trading, a notable recovery for the Phoenix-based airline, which had seen significant losses in recent years. The airline’s stock had dropped 39% in 2025 and lost 90% of its value since the pandemic began.

The merger is seen as a strategic move to enhance resilience in the regional aviation sector amid economic volatility. Industry observers anticipate further consolidation under President Donald Trump’s administration, especially with shifting demand patterns affecting airlines.

Notably, the announcement follows Trump’s recent nomination of Republic CEO Bryan Bedford to lead the Federal Aviation Administration (FAA). This could further shape policies affecting the regional airline industry.

With input from CNBC and Bloomberg.