Mesa Air to sell 18 Embraer jets to United Airlines
07/01/2025 13:23
Jan 7 (Reuters) - Mesa Air Group MESA.O will sell 18
Embraer EMBR3.SA aircraft to United Airlines UAL.O for about
$229.1 million and use the proceeds to cut debt, the regional
airline operator said on Tuesday.
Shares of Mesa, the parent company of Mesa Airlines, rose
more than 10% before the bell.
Most of the aircraft of the Phoenix, Arizona-based company
are operated under an agreement with United, where they fly
under the United Express brand.
Mesa completed the sale of eight of the 18 aircraft on Dec.
31 and expects to close the rest by the end of this month.
The company expects to use $142.4 million of the gross
proceeds from the sale to pay off associated debt, Mesa said in
a regulatory filing.
Mesa also said it had entered into a separate deal with a
third party on Dec. 24 to sell 15 used Bombardier BBDb.TO
CRJ-900 airframes for about $19 million.
The company intends to use the cash from that transaction to
pay down its loan with the U.S. Treasury.
(Reporting by Abhinav Parmar in Bengaluru; Editing by Leroy
Leo)
((Abhinav.Parmar@thomsonreuters.com))