American Eagle Bombardier CRJ-900ER aircraft seen at Phoenix Sky Harbor International Airport.
Alex Tai | SOPA | Getty Images
American Airlines ice falls Mesa Airciting concerns over its partner’s financial and operational woes, a blow to the regional airline, which has struggled with rising costs and the industry’s pilot shortages.
“As a result, we have concerns about Mesa’s ability to be a reliable partner for American going forward,” said Derek Kerr, American’s chief financial officer and president of American Eagle, American Eagle’s regional brand, in an employee release issued by CNBC was viewed on Saturday. “American and Mesa agree that the best way to address these concerns is to terminate our agreement.”
Big airlines like American, United Airlines Spirit Delta Airlines They regularly hire regional airlines to fly many shorter routes, and they account for about half of departures, although that number varies by airline.
Mesa had a net loss of about $67 million for the nine months ended June 30, according to a securities filing. Last week, the Phoenix, Arizona-based airline postponed its earnings report. Mesa did not immediately respond to a request for comment.
American said its agreement with Mesa is tied primarily to its hubs at Dallas/Fort Worth International Airport and Phoenix Sky Harbor International Airport.
American plans to concentrate its flying with its wholly owned regional subsidiaries, such as Envoy and PSA, and an independent regional airline SkyWest. Air Wisconsin will also fly for the American Eagle brand, beginning its arrangement earlier than originally planned, Kerr said.
The last Mesa flight for American will be April 3, though American will cut Mesa flights in March, Kerr said in his note.
“Flights previously operated by Mesa will be replenished by these high quality regional carriers as well as our mainline operations to ensure we continue to build and deliver the very best global network for our customers,” Kerr wrote.
Mesa also flies for United, who did not immediately comment.