Mesa Air Group Soars with $229.1 Million Aircraft Sale
Debt Reduction on the Horizon
Mesa Air Group, the parent company of Mesa Airlines, has announced a significant deal with United Airlines, selling 18 Embraer aircraft for approximately $229.1 million. This move is expected to bring a substantial reduction in debt for the regional airline operator.
A Boost to Shares
The news sent Mesa’s shares soaring, with a more than 10% increase before the market opened. This surge in share value is a welcome development for the company, which operates most of its aircraft under an agreement with United, flying under the United Express brand.
Sale Details
Mesa has already completed the sale of eight of the 18 aircraft, with the remaining 10 expected to be finalized by the end of this month. The company plans to use $142.4 million of the gross proceeds to pay off associated debt, according to a regulatory filing.
Additional Deal Secured
In a separate transaction, Mesa has agreed to sell 15 used Bombardier CRJ-900 airframes to a third party for about $19 million. The company intends to use the cash from this deal to pay down its loan with the U.S. Treasury.
A Positive Step Forward
This dual deal marks a significant step forward for Mesa Air Group, as it works to reduce its debt and strengthen its financial position. With the proceeds from these sales, the company is poised to make meaningful progress in its efforts to improve its balance sheet.
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