Mesa Air Group and United Airlines ink new agreements for improved operating and financing terms

Mesa Air Group and United Airlines have amended their capacity purchase agreement (CPA) and certain credit agreements to significantly improve Mesa’s operating income and liquidity over the next year. Under the new agreement, the block-hour rate in United CPA, retroactive to October 1, 2023 through December 31, 2024, is projected to generate approximately $63.5 million in incremental revenue over the next 12 months. Also, the $12.6 million outstanding United bridge loan and revolving credit facility debt will be extinguished in exchange for Mesa’s vested equity investment in privately held Heart Aerospace, originally purchased for $5 million. Mesa will retain 222,222