Regional carrier Mesa Airlines Group (NASDAQ: MESA) shares are up premarket after the company announced it has signed a new contract with American Airlines(NASDAQ: AAL), replacing the previous agreement.
The new deal will see the company operate 40 CRJ-900 aircraft for a five-year term beginning on January 1st 2021.
“This new contract will position Mesa for long term stability and improved performance on our American operation. This year has been difficult for our entire industry, but I’m thankful that despite the obstacles, American has chosen to continue its long-standing relationship with Mesa,” said Jonathan Ornstein, CEO of Mesa.
The two parties previous contract was set to see 30 CRJ-900 aircraft expire in 2021 with another 17 terminating in 2022.
Mesa’s stock price is up over 21.7% premarket at $7.49 per share after closing on Tuesday at $6.15. Overall this year, Mesa’s shares are down as the airline industry felt the impact of the coronavirus pandemic.