Republic Airways and Mesa Air Group (NASDAQ:MESA) have announced a merger to create a larger regional airline in an all-stock transaction.
The combined entity will be named Republic Airways Holdings Inc and will trade on NASDAQ under the ticker symbol "RJET."
The merger is expected to close in late Q3 or early Q4 of 2025, subject to regulatory and shareholder approvals.
Republic shareholders will own 88% of the merged company, while Mesa shareholders will hold between 6% and 12%, depending on pre-closing conditions.
The merged airline is forecast to generate $1.9 billion in annual revenue, with pretax margins of 7% to 9%, excluding one-time costs, and adjusted EBITDA exceeding $320 million.
It will operate approximately 310 Embraer E170/175 jets, with over 1,250 daily departures. It will continue serving major airlines like American Airlines, Delta Air Lines, and United Airlines under long-term capacity purchase agreements.
The combined company will be led by Republic’s executive leadership team.
"We're thrilled to combine the Republic and Mesa teams to create one of the world's leading Embraer Jet operators," Republic CEO Bryan Bedford said in a statement.
"Republic and Mesa share a common mission to connect communities across America, and we believe that we can better achieve that mission together.”
Jonathan Ornstein, Mesa CEO, added: "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."
Shares of Mesa surged on the announcement, adding about 63.4% at $1.16 in early trade.