Mesa Air Group Stock Surges on Airline Switch

Mesa Air Group will run regional flights for United Airlines

Laura McCandless

Deputy Editor

Dec 19, 2022 at 11:04 AM

Mesa Air Group Inc (NASDAQ:MESA) is in the spotlight today, after news that the company is finalizing a five-year deal with United Airlines (UAL) to operate regional flights, as its winds down its contract with American Airlines (AAL). Mesa also noted it is exploring options to raise money amid rising costs, after the company gave pilots bumper contracts.

MESA is up 12% to trade at $1.31 at last glance, bouncing off last session's record low of $1.15. Pressure from the equity's 60-day moving average and $1.50 level kept a lid on gains earlier this month, and the stock is a far cry from its March 2021 record high of $17.40.

Analysts are bearish toward Mesa Air Group stock. Of the three in coverage, two carry a tepid "hold" rating, while one says "strong sell." However, the 12-month consensus price target of $2.83 is a 116% premium to current levels.

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