Republic Airways Holdings Inc. and Mesa Air Group, Inc. today announced that they have entered into a definitive agreement to merge and create a leading publicly-traded regional airline company in an all-stock transaction.
Republic and Mesa to Merge
This merger combines two of the country’s largest Embraer E-Jet operators into a single, streamlined regional airline. The new entity will boast a fleet of approximately 310 Embraer 170/175 aircraft, with over 1,250 daily departures. Service agreements with major carriers including American Airlines, Delta Air Lines, and United Airlines are expected to remain in place.
Jonathan Ornstein, Mesa’s Chairman and Chief Executive Officer, had thus to say about the merger:
“Today’s announcement is an exciting next step in Mesa’s more than 40-year history, one that represents the best outcome for our shareholders, employees, and all of our stakeholders. By bringing the best of our organizations together, we will create a regional carrier that continues to connect communities across America while providing advancement opportunities to our employees.”
Republic, already a major player in the regional aviation space, brought in $1.5 billion in revenue and served 17.5 million passengers in 2024. Mesa will contribute a new 10-year capacity purchase agreement with United Airlines to the mix, further cementing the new company’s position with legacy carriers.
The merged airline is expected to generate $1.9 billion in annual revenue and EBITDA exceeding $320 million. Notably, all of Mesa’s existing debt will be extinguished prior to the merger, further strengthening the financial outlook.
While this is being billed as a merger, in reality it is more like an acquisition. The leadership team from Republic will helm the new airline, with six current Republic board members and one independent director from Mesa overseeing governance. All frontline staff—including pilots, technicians, and operational employees—are expected to be retained with the combined carrier.
Bryan Bedford, Republic’s President and Chief Executive Officer, said this about the merger:
“We’re thrilled to combine the Republic and Mesa teams to create one of the world’s leading Embraer Jet operators. Republic and Mesa share a common mission to connect communities across America, and we believe that we can better achieve that mission together. With this combination, we are establishing a single, well-capitalized, public company that will benefit from the deep expertise of Republic and Mesa associates, creating value for all stakeholders well into the future.”
The merger is expected to be finalized in late Q3 or early Q4 of 2025, pending regulatory and shareholder approval.
My Thoughts on the Merger
While this isn’t a merger that I saw coming, I can’t say that I’m surprised by the news. Republic Airways has proven itself to be a solid regional partner for the Big 3 U.S. carriers. It operates primarily out of hubs in the Northeast, which sees plenty of demand for travel.
Mesa on the other hand has struggled in recent years. After splitting from American in 2023, the airline partnered with United to fly CRJ-900 aircraft under the United Express banner. United received 10% of the carrier as part of this agreement and Mesa began flying exclusively for United Express.
The CRJ-900s have since left the fleet and Mesa is only operating Embraer 170/175s for United Express. This merger will allow Republic to bolster its fleet and provide some synergies across its operation. This merger is a lifeline for Mesa as the carrier has had shaky financials since the pandemic.
Summary
Republic Airways and Mesa Air Group are merging in an all-stock deal. The combined carrier will operate roughly 310 aircraft and over 1,250 daily departures. Service agreements with American, Delta, and United Airlines are expected to remain in place and the new company is expected to generate $1.9 billion in annual revenue. The merger is set to close by late Q3 or early Q4 of 2025, pending approvals.
