Why Mesa Air Group Stock Is Up Today
Shares of Mesa Air Group (NASDAQ: MESA) climbed more than 10% on Wednesday afternoon after the regional airline operator got a double upgrade from a Wall Street analyst. The company is weathering the pandemic well, and its recent earnings report appears to be making believers out of many on Wall Street.
Airline stocks endured a miserable 2020 due to the pandemic, but Mesa is not a typical airline. The company operates small planes under contracts with larger partners. In Mesa's case, that means it flies primarily for American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and Deutsche Post (OTC: DPSGY) DHL. The fee-for-service model has helped insulate Mesa from some of the losses its larger partners have faced during the pandemic. Mesa last week surprised investors with a fiscal first-quarter profit that exceeded expectations, causing the stock to gain altitude.
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Source Fool.com
