US regional airline company Mesa Air Group has regained compliance with the Nasdaq stock market’s listing rules, which require companies to sustain stock prices above $1.
The Phoenix-based parent of regional carrier Mesa Airlines disclosed on 5 June that it had received a notification from the Listing Qualifications Department of the stock exchange that it had maintained a closing bid price of $1 for at least 10 consecutive trading days, returning it to good standing.
Mesa’s stock stayed over a closing bid of $1 between 20 May and 3 June, and is currently selling for more than $1.40.
”Mesa has thus satisfactorily regained compliance with the minimum bid price requirement and Nasdaq considers the matter closed,” it says.
The struggling company first received notice that it risked de-listing from the Nasdaq in November 2023 because its stock price had dipped below $1 for 30 consecutive trading days. It received an 180-day extension last month and also transferred its common stock to a tier of the Nasdaq stock market with less stringent financial and liquidity requirements.
The company will continue trading under the symbol “MESA”.
Mesa previously risked de-listing because it had not filed an end-of-year report for the period ending 30 September. After months of delays, the company filed its fiscal fourth-quarter earnings report in late January.
The company then delayed reporting financial results for its fiscal first quarter. On 24 May, Mesa Air Group reported that it lost $57.9 million during the final three months of 2023, compared with a $9 million loss during the prior-year period.
Revenue was down to $119 million from $147 million during the same three months of 2022, as its block hour flying and capacity as measured in available seat miles decreased by 8.4% and 12.7%, respectively.
The struggling company has not flown enough block hours to cover costs since it transferred all of its Bombardier CRJ-family aircraft from American Airlines to United Airlines last year.
However, Mesa says that United has agreed to pay it a “significantly higher block-hour rate” for flying Embraer 175s on its behalf.
