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Why Mesa Air’s better-than-expected pilot supply is actually bad news

Why Mesa Air’s better-than-expected pilot supply is actually bad news

Why Mesa Air’s better-than-expected pilot supply is actually bad news

PHOENIX — Mesa Air Group, the Phoenix-based company that operates regional commercial carrier Mesa Airlines, has been able to hire and retain pilots better than expected.

As a result, the airline announced on July 2 that it would implement a license for pilots.

On July 12, Mesa Air (Nasdaq: MESA) will temporarily furlough 12 pilots and implement training deferrals for 41 pilots in training, the company announced. The deferrals and temporary suspensions are expected to save Mesa about $750,000 per month in operating expenses.

The pilot glut for Mesa Air is a dramatic change from just a few years ago, when the company was struggling to hire and retain enough pilots because major airlines such as United Airlines and American Airlines were quickly hiring them.

Read more of this story in the Business Journal.