American Airlines is dropping regional carrier Mesa, citing financial and operational issues

An American Eagle Bombardier CRJ-900ER aircraft seen at Phoenix Sky Harbor International Airport.

Alex Tai | Sopa | Getty Images

american airlines falling Mesa Airciting concerns about financial and operational issues for partners, increasing costs and pilot shortage.

Derek Carr, American’s chief financial officer and president of American’s regional brand American Eagle, said in a staff memo seen by CNBC, “As a result, Mesa will become a trusted partner for American going forward. I’m worried about my ability,” he said. Saturday. “American Airlines and Mesa agree that the best way to address these concerns is to terminate the contract.”

A major carrier like America, united airlines When delta airlines It regularly contracts with regional airlines and flies many shorter routes, accounting for about half of departures, although the number varies by airline.

Mesa posted a net loss of about $67 million in the nine months ended June 30, according to its securities report. Last week, the Phoenix, Arizona-based airline postponed its quarterly earnings report. Mesa did not immediately respond to a request for comment.

American Airlines said the deal with Mesa primarily relates to hubs at Dallas/Fort Worth International Airport and Phoenix Sky Harbor International Airport.

American Airlines plans to concentrate flights on wholly-owned regional subsidiaries such as Envoy and PSA, as well as independent regional carriers. sky westAir Wisconsin, which also flies under the American Eagle brand, plans to begin the contract sooner than originally planned, Kerr said.

American Airlines’ final Mesa flight is scheduled for April 3, but American Airlines is cutting Mesa flights in March, Kerr said in a memo.

“The flights previously performed by Mesa will be backfilled by these high quality regional airlines and our mainline business so that we can continue to build and serve the best global network for our customers. will be,” writes Carr.

Mesa also plays for United, but United did not immediately comment. American Airlines is dropping regional carrier Mesa, citing financial and operational issues

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