Shares of Mesa Air Group Inc, the parent company of interisland carrier go!, fell to their lowest point since 1987 after another money-losing airline, Frontier Airlines Holdings Inc., filed for bankruptcy, Bloomberg News reported.

The decline in Mesa's stock price was the seventh drop in eight days as Mesa's shares fell to 67 cents.

Bloomberg said Mesa has tumbled as it appeals an Oct. 30 legal judgment of $80 million, risks losing some flying for Delta Air Lines and plans a stock issue tome pay bondholders.

"Recovery chances, we believe, are limited due to industry turmoil, potential lawsuits and competition for contracts," said Calyon Securities Analyst Ray Neidl in a research note. Bloomberg said he wrote the comments as he dropped his coverage of the Phoenix-based company.