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Mesa Air Group (NASDAQ:MESA) stock rose sharply after the bell on Thursday after posting stronger than expected Q4 revenue.
For the fourth quarter, the Phoenix-based airline notched $125.6M in revenue, exceeding estimates by $1.41M. An adjusted per share loss of $0.37, meanwhile, came in $0.11 wider than expected. The airline had previously delayed its report, from which point a new agreement with United Airlines (UAL) was announced to replace a prior cooperation agreement with American Airlines (AAL).
“Building on our relationship with United Airlines that began in 1992, we are delighted to announce our new and expanded agreements with United, allowing us to expand United’s reach into cities that have seen reductions or loss of flight service created by the industry-wide pilot shortage,” CEO Jonathan Ornstein said. “After the transition, Mesa will be the only exclusive regional carrier for United operating large regional jets. We believe our strong relationship with United will provide significant opportunities for growth in the future.”
He added that United will provider “significant liquidity” to Mesa, aiding the regional airline in navigating the pilot shortage.
“With our pilot pipeline now filled thanks to our new pay scale and enhanced opportunities with United through Aviate, Mesa is in a superior position to meet the significant demand for regional flying,” Ornstein concluded.
Shares of Mesa Air (MESA) rose 2.22% in Thursday’s extended session.
Read Seeking Alpha’s recent interview with Ornstein.
