US regional operators Mesa Air Group and Republic Airways Holdings have agreed to merge in an all-stock deal that will see the combined company operate a 310-strong fleet of Embraer 170 and 175 jets. Phoenix, Arizona-based Mesa and Indiana-based Republic will operate under the Republic Airways Holdings brand once the transaction has closed, which is expected to happen in the third or fourth quarter of 2025, subject to regulatory approvals. The combined airline will operate a "single fleet" of about 310 Embraer 170 and 175 regional jets. Fleet data shows that Republic Airways has 177 in-service E175s plus 40 on order, as well as 31 in-service E170s. Mesa's fleet includes 60 in-service E175s. It also has 100 battery-electric-powered Heart Aerospace ES-30s on order. Mesa and Republic intend to continue operating under their existing US Federal Aviation Administration operating certificates until a single operating certificate is secured. Republic will continue to operate regional flights on behalf of American Airlines, Delta Air Lines and United Airlines under its existing capacity purchase agreements (CPAs), while Mesa will support United under a new 10-year CPA. The merged company will be led by Republic's executive leadership team. Republic shareholders will own 88% of the company's common shares while Mesa's shareholders will own a minimum of 6% and up to 12% of the entity. "We're thrilled to combine the Republic and Mesa teams to create one of the world's leading Embraer jet operators," states Republic chief executive Bryan Bedford. "With this combination, we are establishing a single, well-capitalised, public company that will benefit from the deep expertise of Republic and Mesa associates, creating value for all stakeholders well into the future." Mesa chief executive Jonathan Ornstein adds that the deal "represents the best outcome for our shareholders, employees and all of our stakeholders". Mesa and Republic expect the combined company to produce revenues of $1.9 billion and adjusted EBITDA of more than $320 million. Mesa "will not contribute any debt" to the merged entity, according to the joint statement. Post-merger cash and debt balances are forecast to be $285 million and $1.1 billion, respectively.

Spirit Airlines chief executive Ted Christie has stepped down from his role, less than a month after the US carrier emerged from Chapter 11 bankruptcy protection. "The board of directors is in the process of appointing a permanent replacement," Spirit states. The Florida-based carrier has established an "office of the president" to carry out Christie’s duties until a permanent chief executive is hired. This will see his responsibilities split between the airline's chief operating officer John Bendoraitis, its chief financial officer Fred Cromer and Thomas Canfield, who serves as Spirit's general counsel and secretary. The airline says that it has entered into a "separation and release" agreement with Christie, under which he will receive severance payments in accordance with a 2017 executive severance plan. These payments are contingent upon "Mr Christie's agreement to a standard release of claims and continued compliance with applicable restrictive covenants". Christie joined Spirit in 2012 and has been chief executive since 2019. He has held previous positions at Pinnacle Airlines and Frontier Airlines. The carrier's chief commercial officer, Matthew Klein, has also stepped down from his role with immediate effect. He has been replaced by senior vice-president and chief transformation officer Rana Ghosh. Spirit filed for Chapter 11 bankruptcy protection in November 2024. On 11 February 2025, Spirit reiterated its intention not to merge with Frontier Airlines after the latest proposal and counter-proposal exchanged between the US carriers failed to culminate in an agreement. Spirit's plan of reorganisation under Chapter 11 bankruptcy from the US Bankruptcy Court for the Southern District of New York was confirmed by the court on 12 February. The plan was made effective on 12 March, the day that Spirit emerged from Chapter 11 with a reconstituted board of directors.

Fitch has hiked British Airways' (BA) credit rating to 'BBB' from 'BBB-', citing the airline's consistently strong operational results and improved financial metrics. It maintains a stable outlook for the carrier. A 'BBB' rating denotes a "good" credit profile with a low risk of default, according to the agency's definitions. It is above speculative grade but below a "high quality" rating of 'A', with an even lower default risk. The upgrade reflects a significant improvement in BA's standalone credit profile, driven by robust financial performance in its latest annual results published on 28 February. Notably, strong earnings at the Oneworld carrier has enabled it to pay down debt, a factor behind a recent decision by S&P to also raise the company's credit profile. Fitch highlights that BA's EBITDAR leverage improved to 2.6x in 2024, and forecasts it will further decline to around 2x by 2027, supported by capacity expansion, resilient margins, and debt reduction. The agency notes that several key other factors that have contributed to the upgrade, including improved profitability and BA's transformation initiatives which have resulted in cost reductions, with margins having significantly increased in 2024. The airline's resilient yields, particularly on transatlantic routes, and ongoing cost-efficiency efforts have also played a crucial role. Fitch expects BA to invest approximately £6 billion over the next three years in fleet renewal and digital enhancements, largely funded by its own cash flow. Furthermore, BA's financial flexibility is improving, with growth in EBITDA leading to higher cash flow from operations. The airline has also resumed dividend distributions, reflecting its strong financial position. Meanwhile, BA benefits from the stronger consolidated credit profile of its parent IAG. The ratings agency considers BA's strategic importance to the group to be high, given its strong business profile and significant contribution to the group. Fitch's analysis also compared BA's business profile favourably to other major airlines, including Delta Air Lines, Lufthansa, and Air France-KLM, emphasizing BA's diversified route network and strong hub position at Heathrow. BA's stable outlook reflects Fitch's expectation of continued profitable growth and moderate leverage for BA, although it cautions that downside risks could arise from economic and geopolitical uncertainties.