Category Archives: SkyWest Airlines

SkyWest announces an agreement to fly 18 additional Embraer 175s for United Airlines

SkyWest, Inc. (St. George, Utah) announced today that its wholly-owned subsidiary SkyWest Airlines, Inc. (St. George, Utah) has entered into an amendment to an existing Capacity Purchase Agreement with United Airlines, Inc. (Chicago) to operate an additional 18 new Embraer E175 dual-class regional jet aircraft.

The cabin will be a dual-class configuration of 76 seats and will be equipped with Wi-Fi. Under the agreement, it is anticipated that delivery of the aircraft will begin in late 2016, with all 18 aircraft being delivered by mid-2017.

Copyright Photo: Michael B. Ing/ SkyWest Airlines’ Embraer ERJ 170-200LR (ERJ 175) N124SY (msn 17000439) in United Express colors approaches the runway at Los Angeles.

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SkyWest Airlines’ pilots agree to a new three-year contract

SkyWest Airlines‘ (St. George, Utah) pilots last week accepted a three-year pay agreement, securing top compensation and work rules in the regional industry. The agreement, for which the strong majority of pilots voted in favor, is effective immediately and runs through mid-2018.

SkyWest (red-blue) logo (LRW)

“SkyWest pilots are top of our industry, and this agreement reflects that position,” said Mike Thompson, SkyWest Airlines Chief Operating Officer. “This vote reaffirms SkyWest’s position as an industry leader and ensures we are best positioned for future opportunity. We look forward to continuing to work with our pilots and all SkyWest people to further advance SkyWest’s position as the airline and employer of choice.”

The new agreement provides salary increases for all pilots, a substantial increase to first-year pay, guaranteed profit sharing and an increased 401(k) match, as well as a number of enhancements to work rules. The previous agreement became amendable in January 2015.

Copyright Photo: Michael B. Ing/ Bombardier CRJ200 (CL-600-2B19) N465SW (msn 7845) in the 2009 house colors arrives at Los Angeles. SkyWest is gradually grounding its smaller 50-seat regional jets.

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SkyWest reports a second quarter net profit of $31.5 million

SkyWest, Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George, Utah) reported its financial and operating results for the quarter ended on June 30, 2015:

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SkyWest generated $31.5 million of net income for Q2 2015, or $0.61 per diluted share. This represents an improvement of $46.2 million from Q2 2014, which had a net loss of $(14.7) million, or $(0.29) per diluted share. Operating income for Q2 2015 was $70 million, which represents SkyWest’s best quarterly operating income since 2008.

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SkyWest reported $41 million of net income for the first half of 2015, or $0.79 per diluted share, a $79 million improvement compared to the first half of 2014 which had a net loss of $(38) million, or $(0.73) per diluted share.

Q2 2015 Financial Highlights

  • Pre-tax income increased $58 million in Q2 2015 from Q2 2014, primarily due to improved operating performance, additional flying contracts with improved profitability and a reduction in the number of aircraft operating under unprofitable flying contracts.
  • SkyWest generated $135 million in EBITDA in Q2 2015, compared to $77 million in Q2 2014. For the first half of 2015 EBITDA was $234 million, compared to $112 million for the first half of 2014.
  • Revenue included improvements of $32 million from the additional E175 operations, improved contract rates from renewals of SkyWest’s existing flying contracts and improved contract performance incentives compared to Q2 2014. Revenue also improved from Q2 2014 by $11 million from higher flight completion rates. These improvements provided a significant offset to the revenue decrease from a reduced fleet size and less scheduled production for a net decrease in revenue of $28 million year over year.
  • Operating expenses were down by $85 million compared to Q2 2014, primarily driven by operating efficiencies from improved completion rates, a net decrease in production, maintenance cost initiatives and a reduction in fuel costs.

Q2 2015 Operational Update

  • Excluding weather cancellations, the adjusted flight completion rate for ExpressJet Airlines, Inc. (“ExpressJet”) improved to 99.8% in Q2 2015 from 99.0% in Q2 2014. The adjusted flight completion rate for SkyWest Airlines, Inc. (“SkyWest Airlines”) also improved to 99.2% in Q2 2015 from 99.0% in Q2 2014.
  • Including weather cancellations, ExpressJet’s raw flight completion rate was 97.5% in Q2 2015 compared to 95.3% in Q2 2014. SkyWest Airlines’ raw flight completion rate improved to 98.4% in Q2 2015 compared to 97.4% in Q2 2014.
  • Total aircraft in service went to 676 at June 30, 2015, from 693 at March 31, 2015, summarized as follows:

1. Added six new E175 aircraft with United Air Lines, Inc. (“United”)

2. Added three new E175 aircraft with Alaska Air Group (“Alaska Airlines”)

3. Added ten used ERJ 145 aircraft with American Airlines, Inc. (“American”)

4. Removed 24 ERJ 145/ERJ 135 aircraft from service

5. Removed twelve EMB-120 turboprop aircraft from service

  • Under its fleet transition, SkyWest generated approximately 24,000 additional block hours with its dual class aircraft (CRJ700s/900s and E175s) compared to Q2 2014. SkyWest also had a reduction of approximately 72,000 block hours with its 50-seat and smaller sized aircraft (CRJ200s, ERJ145s/135s and EMB120s) compared to Q2 2014. The total aircraft in service decreased to 676 at June 30, 2015 from 752 at June 30, 2014.
  • Under an agreement announced in Q2 2015, SkyWest Airlines will place 8 additional E175 aircraft into service with Alaska Airlines, for a total of 15 E175s with Alaska Airlines. SkyWest Airlines is scheduled to take delivery of the remaining twelve new E175 aircraft for Alaska Airlines between Q4 2015 and Q4 2016.
  • Under a previously announced agreement, SkyWest Airlines is scheduled to take delivery of five new E175 aircraft for United during Q3 2015.

    Commenting on the results, Chip Childs, SkyWest, Inc. President, said,

    “Our second quarter results reflect meaningful progress in our action plans to secure profitable flying contracts, remove unprofitable aircraft and provide solid operating performance. These actions are the primary drivers for the strong earnings momentum we are generating. We remain committed to disciplined deployment of capital and resources as we continue the process of optimizing our fleet size and mix.”

Q2 2015 Capital and Liquidity Update

  • SkyWest had $505 million in cash and marketable securities at June 30, 2015, an increase of $24 million from March 2015. SkyWest made capital investments of $40 million during the quarter to acquire nine E175 aircraft including spare parts and engines.
  • SkyWest repurchased 1.25 million shares of its common stock for $18.7 million in cash during Q2 2015
  • The company issued $229 million in new long term debt to finance spare engines and the nine new E175s delivered during the quarter.
  • SkyWest anticipates using approximately $30 million in cash as investments in E175 aircraft scheduled for delivery in Q3 and Q4 of 2015.

SkyWest’s two airline companies provide commercial air service in cities across the United States, Canada, Mexico and the Caribbean with more than 3,500 scheduled daily flights. SkyWest Airlines operates through partnerships with United, Delta, US Airways, American and Alaska Airlines. ExpressJet operates through partnerships with United, Delta and American.

Copyright Photo: Michael B. Ing/ SkyWest is rapidly reducing the amount of 50-seat regional jets as the report states above. Its largest Bombardier CRJ200 customer is United Airlines but that too will continue to be reduced. Bombardier CRJ200 (CL-600-2B19) N956SW (msn 7871) in United Express colors departs from Los Angeles International Airport.

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SkyWest Route Map: (click on the map for the full size view):

SkyWest 7.2015 Route Map

ExpressJet Route Map (click on the map for the full size view):

ExpressJet 7.2015 Route

Alaska Airlines to launch more routes from Portland

Alaska SkyWest E175 + pilot (Alaska)(LR)

Alaska Airlines (Seattle/Tacoma) is launching daily nonstop service from its Portland, Oregon, hub to three Midwest destinations including Kansas City, Minneapolis/St. Paul and Omaha, Nebraska, starting on February 18, 2016.

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The routes are in addition to new Portland – Austin, Texas service the carrier announced last month.

Alaska PDX 7.2015 New Service
The daily flights will be operated by SkyWest Airlines (St. George) with 76-seat Embraer E175 jets featuring 12 seats in first class and 64 in coach, and boasting cabin dimensions on par with a 737.

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Top Photo: Alaska Airlines.

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Route Map: Routes operated by SkyWest for Alaska Airlines:

Alaska SkyWest 7.2015 Route Map

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SkyWest today starts operating Embraer ERJ 175s for Alaska Airlines

Alaska Airlines (Seattle/Tacoma) today inaugurates service between Seattle/Tacoma and Milwaukee, Wisconsin; Seattle/Tacoma and Oklahoma City, Oklahoma; and Portland, Oregon and St. Louis. Alaska (2014) logo

Alaska SkyWest Schedule

The daily flights will be operated by SkyWest Airlines (St. George) with 76-seat Embraer E175 jets (above and below) featuring 12 seats in first class and 64 in coach, and boasting cabin dimensions on par with a 737.

Alaska SkyWest ERJ 175 N170SY (90)(Grd) SEA (Alaska)(LR)

Photo Above: Alaska Airlines.

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Onboard amenities will include Alaska Beyond Delicious, featuring food and beverages sourced with items from iconic Pacific Northwest brands, and Inflight Internet access. By mid-July the planes will also be equipped with Alaska Beyond Entertainment, which offers free and premium entertainment direct to customer devices, First class customers will also enjoy power outlets at each seat.

In other news, Alaska Airlines has also announced it is doing away with the standard fee for the first checked bag for Alaska Airlines Visa Signature consumer cardholders.

Top Copyright Photo: Raul Sepulveda/ The pictured SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N171SY (msn 17000485) was delivered via San Juan.

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Delta adds another Seattle/Tacoma feeder route, adds two Bahamas routes from Atlanta this winter

Delta Air Lines (Atlanta) continues its build-up at Seattle-Tacoma International Airport (SeaTac) (SEA) hub with new Delta Connection service. The carrier will add the SEA – Billings, Montana (CRJ700) route on December 19 per Airline Route.

The airline is also adding twice-weekly Delta Connection Bombardier CRJ700 service from the Atlanta hub to both Marsh Harbour and North Eleuthera on December 19.

Copyright Photo: Michael B. Ing/ Formerly operated by Horizon Air at the Seattle hub, now the CRJ700 regional jet is being operated by SkyWest Airlines as a Delta Connection carrier at SEA. Bombardier CRJ700 (CL-600-2C10) N603QX (msn 10011) taxies to the runway at SeaTac.

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SkyWest Airlines orders eight additional Embraer 175s for Alaska Airlines

Alaska SkyWest ERJ 175 PR-EMP (N170SY)(90)(Flt)(Embraer)(LRW)

Embraer S.A. and SkyWest, Inc. (SkyWest Airlines) (St. George, Utah) have announced today at the 51st International Paris Air Show, a firm order for eight E175 jets. The aircraft will be flown by SkyWest Airlines under a Capacity Purchase Agreement (CPA) with Alaska Airlines as Alaska SkyWest. The value of the contract, which will be included in Embraer’s 2015 second-quarter backlog, is estimated at $355 million based on 2015 list prices.

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Embraer issued this statement:

This is the second agreement between SkyWest and Alaska Airlines involving the E175. In November of last year, the two companies signed a CPA for seven aircraft of the same model. The first airplane in Alaska Airlines livery enters service next month.

These eight new aircraft are part of SkyWest’s previous order for 100 (40 firm and 60 reconfirmable) E175 current generation E-Jets – with an additional 100 options – placed in May 2013. This reconfirmation brings the total number of firm orders to 55 aircraft. The E175s for Alaska Airlines will be configured with 76 seats and include 12 First Class seats. Delivery for the additional eight E-Jets is scheduled for 2016.

SkyWest is the largest regional airline group in the world and is the parent company of SkyWest Airlines and ExpressJet Airlines. Both companies have long histories with Embraer and were early customers for the Embraer EMB 120 Brasilia turboprop aircraft. In a separate deal with Embraer announced in June of 2013, SkyWest became the launch customer for the E175-E2, ordering 100 aircraft with 100 additional options. Deliveries begin in 2020.

Alaska Airlines also issued this statement:

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SkyWest Airlines announced today that they will purchase eight new, dual-class Embraer E175 jets to fly for Alaska Airlines. The new planes, to be delivered in 2016, will replace eight older regional jets SkyWest currently flies for the Seattle-based carrier.

The announcement comes the same month SkyWest takes ownership of the first of seven E175s purchased last fall to be flown for Alaska under a capacity purchase agreement (CPA). The regional carrier will begin flying the planes for Alaska on July 1 with the start of new service from Seattle to both Milwaukee and Oklahoma City, and between Portland, Oregon and St. Louis.

The 76-seat E175 jet will feature 12 seats in first class and 64 in coach. Onboard amenities include Alaska Beyond Entertainment featuring free short subject videos and movies and TV shows for purchase direct to customer devices. Inflight Internet access is also available, as well as Alaska Beyond Delicious which offers Pacific Northwest-inspired food and beverages. Additionally, customers seated in first class will enjoy 110 volt power in every seat.

SkyWest expects to retire its current Bombardier CRJ700 regional jets fleet flying for Alaska by the fall of 2016.

Copyright Photo: Embraer. The pictured Embraer ERJ 170-200LR (ERJ 175) PR-EMP became N170SY (msn 17000483) on delivery.