A federal judge Thursday blocked Delta Air Lines Inc. from terminating a regional flying contract with a subsidiary of Mesa Air Group Inc.
Mesa shares shot up almost 40 percent on the news.
Phoenix-based Mesa had warned that it would file for bankruptcy protection by July 20 and cut 700 jobs 14 percent of its work force if Delta's termination of the contract with Freedom Airlines stuck and Mesa was unable to redeploy unused aircraft.
A spokeswoman for Atlanta-based Delta said the airline was disappointed with U.S. District Judge Clarence Cooper's ruling approving an injunction, and it planned to appeal.
Mesa said the contract amounts to $20 million in monthly revenue for the parent company, or about 20 percent of its total sales for 2007. Mesa has 5,000 employees overall.