Mesa Air Group (NASDAQ:MESA) is a regional airliner that operates a fleet of 146 airplanes with nearly 400 daily trips to 102 cities, primarily in the Southern and Western parts of the US and Mexico. The stock is quite attractive from a variety of perspectives including its drone delivery pilot program. Read on to learn more.Mesa Air Group (MESA) is a regional airliner that operates a fleet of 146 airplanes with nearly 400 daily trips to 102 cities, primarily in the Southern and Western parts of the US and Mexico. Most of its business comes through operating agreements with American Airlines (NASDAQ:AAL) and United Air (UAL).
Due to the pandemic, airline stocks had been one of the hardest-hit sectors over the past 18 months. Within the airline industry, I believe that investors should favor regional airlines as they should see their revenues bounce back first. This is because business travel and international travel will be the slowest segments to recover, while the fastest are vacations travel and people visiting family and friends.
Despite this massive catalyst, MESA remains quite cheap relative to its peers and the broader market. Further, MESA was able to get through the pandemic without taking on significant amounts of debt or issuing equity that would be dilutive in the coming years. Over the last few months, MESA’s stock price has declined along with other travel stocks as it became clear that case counts were once again on the rise and the Delta Variant was going to impede the economy’s reopening and return to normal. However, this is creating an exceptional opportunity for investors to scoop up MESA at a discount.