Tag Archives: SkyWest Airlines

Delta to add Seattle/Tacoma – Edmonton service

Delta Air Lines (Atlanta) continues to build up its Seattle-Tacoma International Airport (SEA) hub. The carrier will add daily Delta Connection Bombardier CRJ700 jet service from SEA to Edmonton, Alberta per Airline Route.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. SkyWest Airlines’ Bombardier CRJ700 (CL-600-2C10) N614SK (msn 10051) lands at Long Beach.

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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/AirlinersGallery.com. 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/AirlinersGallery.com. 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.

SkyWest (red-blue) logo (LRW)

 

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.

SkyWest logo-4

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/AirlinersGallery.com. 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/AirlinersGallery.com. 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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Delta to add another spoke route to the Seattle/Tacoma hub: Missoula, Montana

Delta Air Lines (Atlanta) is planning to add another feeder route to its growing Seattle-Tacoma International Airport (SeaTac) hub. The carrier will commence daily Delta Connection service between Missoula, Montana with Bombardier CRJ700 regional jets on December 19 per Airline Route.

In other news, Delta is ending its London (Heathrow) – Newark and London (Heathrow) service on October 5. Virgin Atlantic will restore a second daily Los Angeles service when Delta ends the route.

 

Copyright Photo: Michael B. Ing/AirlinersGallery.com. SkyWest Airlines’ Bombardier CRJ700 (CL-600-2C10) N631SK (msn 10329) taxies to the runway at the Seattle-Tacoma International Airport (SEA) hub.

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Delta Connection-SkyWest aircraft slide show: AG Airline Slide Show

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