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Bloomberg
American Airlines Group Inc said it will wind down its partnership with Mesa Air Group Inc on concern about reliability at the regional airline, which has been struggling to hire pilots
during an industry-wide shortage.
“Mesa Airlines has experienced various financial and operational difficulties this year,†Derek Kerr, American’s chief financial officer, said in a memo.
“We have concerns about Mesa’s ability to be a reliable partner for American going forward.â€
Mesa officials didn’t immediately respond to an email sent after-hours seeking comment.
Phoenix-based Mesa said last week it would delay release of its fourth-quarter results and 10-K filings. Shares of the Phoenix-based carrier dropped 20% last week and are down 79% this year.
The partnership, which was focused on American’s Phoenix and Dallas/Ft Worth hubs, will begin winding down in March, with the final Mesa-operated flights for American ending on April 3, according to the memo.