Mesa Air Group Stock Soars as Regional Carrier Agrees To Merge With Republic Airways

Shares of Mesa Air Group (MESA) soared more than 50% Monday morning on news the carrier agreed to merge with fellow regional carrier Republic Airways in an all-stock transaction.

The combined firm would be renamed Republic Airways Holdings and remain listed on the Nasdaq with a new ticker symbol, “RJET,” the airlines said.

Deal Expected To Close Late Q3 or Early Q4

The deal, which “is expected to close in either the late third or early fourth quarter of 2025,” has been unanimously approved by both boards. Upon closing, Republic shareholders would own 88% of the combined company’s common shares, while Mesa shareholders would own between 6% and 12%, “dependent upon Mesa’s achievement of certain pre-closing criteria.” All outstanding Mesa debt would be erased.

“The transaction is anticipated to deliver value creation for both Mesa and Republic shareholders, who stand to benefit from the ownership of a better capitalized airline with increased economies of scale, due to Republic’s strong financial position, stable earnings and cash flow,” the airlines said.

Indianapolis-based Republic Airways operates regional flights on behalf of United Airlines (UAL), Delta Air Lines (DAL), and American Airlines (AAL). It would continue to support the carriers under its existing capacity purchase agreements (CPA), and “Mesa’s operations will support United Airlines under a new 10-year CPA,” the release said. 

“Republic and Mesa share a common mission to connect communities across America, and we believe that we can better achieve that mission together,” said Republic CEO Bryan Bedford, President Donald Trump’s nominee to head the Federal Aviation Administration (FAA). “With this combination, we are establishing a single, well-capitalized, public company that will benefit from the deep expertise of Republic and Mesa associates, creating value for all stakeholders well into the future.”