The Clap
Due to concerns about Mesa’s financial and operational issues, American Airlines (NASDAQ:AAL) has decided to stop using Mesa Air (NASDAQ:MESA) for some of its regional flights.
What
Mesa is facing a few financial and operational issues, mainly due to increased costs and a pilot shortage. This has pushed American Airlines to question Mesa’s reliability and cut ties with the company.
So What
Since travel demand began to pick up once again, airlines’ biggest problem is a shortage of pilots. The shortage has pushed airlines to drastically increase pilot wages to attract more aviators.
This in turn added financial pressure on Mesa and all other airlines alike.
Now What
Mesa’s final American Airlines flight has been set for April 3. American Airlines will continuously slash flights for the coming few months until then.
Mesa plans to shift all flying on their CRJ9000 aircrafts to United Airlines (NASDAQ:UAL).
