Stocks of Mesa Air Group soar as regional carrier agrees to merge with Republic Airways

Key Takeaways

• Shares in Mesa Air Group surged Monday after the carrier announced it had agreed to merge its regional carrier Republic Airways with another regional carrier.
• The combined firm would be renamed Republic Airways Holdings and remain listed on the Nasdaq with a new ticker symbol, "RJET," the airlines said.
• The deal "is expected to close in either the late third or early fourth quarter of 2025," the carriers said.

Shares of Mesa Air Group soared by more than 50% on Monday morning following the announcement that the regional carrier Republic Airways had agreed to merge into Mesa Air Group in a stock-only 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 in 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 Mesa debt will be wiped out.

"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 provide support for the carriers under the existing capacity purchase agreement (CPA) and “Mesa will support United Airlines’ operations under a new 10 year CPA,” according to the press release. 

“Republic and Mesa have a shared mission to connect communities in America, and we think that we can achieve this mission better together,” said Republic CEO Bryan Bedford. Bedford is President Donald Trump’s nominee for the Federal Aviation Administration. “With this combination we are creating a well-capitalized public company that will be able to benefit from the deep expertise and knowledge of Republic associates as well as Mesa associates in the future.