Mesa Air Group will cease operating regional flights for American Airlines on April 3 and is finalizing a new five-year deal with United Airlines.

Mesa said it initiated and finalized a winding down of operations for American because flying for the carrier has become unprofitable. American in June raised pilot wages for wholly owned regional subsidiaries Envoy, Piedmont and PSA but not for nonaffiliated partners, which put Mesa at a disadvantage. Mesa gave pilots a raise in September. 

Further, Mesa said it was incurring penalties for falling short of contracted flying hours because it didn’t have enough pilots.

American Eagle and Mesa had increased pay to attract new hires and retain pilots during an ongoing pilot shortage. The shortage has generally affected regional airlines more than the mainline carriers.

Mesa flies Bombardier CRJ-900 aircraft for American Eagle, and Mesa said those planes would be used for United Express operations under a new agreement starting in March. Mesa already flies Embraer E-175s for United Express.

Mesa maintaining crew bases

Mesa said the new United deal would cover all of Mesa’s existing flying at American and could increase to 38 CRJ-900 aircraft, depending on the number of E-175s that Mesa is operating. Mesa also said United would “compensate Mesa for the higher costs associated with regional jet flying.”

In addition, Mesa will maintain its crew bases that are currently operating for American Eagle in Phoenix; Dallas; El Paso, Texas; and Louisville, Ky. Mesa has agreed to open a CRJ-900 crew base in Houston and a new pilot base in Denver.

Mesa’s relationship with American, and the airlines that have been absorbed into AA, goes back 30 years. In 1992, it began operating America West Express flights. Mesa also did regional flying for US Airways.

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