Tag Archives: SkyWest Airlines

SkyWest reports first quarter net income of $9.6 million, downsizes the fleet by 24 aircraft

SkyWest, Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George, Utah) reported net income of $9.6 million, reversing a previous net off of $22.9 million in the same quarter a year ago.

The company removed 15 Embraer EMB-120 Brasilias from service along with 29 50-seat aircraft previously operated for United Express. The represents a net reduction in the combined fleet of 24 aircraft. SkyWest will further reduced the fleet by another 60 aircraft by the end of this year. The company is eliminating unprofitable aircraft and contract routes.

Here is the full financial report:

SkyWest, Inc. reported financial and operating results for the quarter ended March 31, 2015.

SkyWest generated $9.6 million of net income, or $0.18 per diluted share, for Q1 2015. This represents an after-tax improvement of $32.5 million from Q1 2014, which had a net loss of $(22.9) million, or $(0.44) per diluted share.

Q1 2015 Financial Highlights

  •   Pre-tax income increased $59 million from Q1 2014 primarily due to improved operating performance, additional flying contracts and improved recovery from weather disruptions.
  •   SkyWest generated $100 million in EBITDA in Q1 2015, compared to $35 million in Q1 2014.
  •   Revenue included improvements of $21 million from higher flight completion rates and $33 million from the additional E175 operations, improved contract rates from renewals and extensions and improved contract performance incentives. These improvements provided a significant offset to the anticipated revenue decrease from a reduced fleet size and production.
  •   Operating expenses were down by $74 million compared to Q1 2014, primarily driven by improved operating efficiencies and a net decrease in production.

Q1 2015 Operational Update

  •   ExpressJet’s adjusted completion rate significantly improved to 99.6% in Q1 2015 from 98.0% in Q1 2014. SkyWest Airlines adjusted completion rate also improved to 99.3% in Q1 2015 from 99.0% in Q1 2014.
  •   ExpressJet reduced its number of total cancelled flights, including weather cancellations, to 7,300 flights, or 4.5% of scheduled flights, in Q1 2015, from approximately 20,400, or 10.6% of scheduled flights, in Q1 2014. Additionally, SkyWest Airlines reduced its number of total cancelled flights, including weather cancellations, to 3,500 flights, or 2.3% of scheduled flights, in Q1 2015, from 6,400 flights, or 4.1% of scheduled flights, in Q1 2014.

April 30, 2015

  •   SkyWest was named one of “America’s Best Employers 2015” by Forbes ®. SkyWest is the only regional airline company included on the 2015 list.
  •   The reduction in ExpressJet’s ERJ145 operations was the primary driver in SkyWest’s 6.4% reduction in departures and a 5.5% reduction in block hours compared to Q1 2014.
  •   Total aircraft in service went to 693 at March 31, 2015 from 717 December 31, 2014, summarized as follows:

o Added nine new E175 aircraft with United

o Added five used 50-seat aircraft with Delta and six used 50-seat aircraft with American

o Removed 15 EMB120 aircraft from service

o Removed 29 50-seat aircraft from service previously operated with United

 Under a previously announced agreement with Alaska Airlines, SkyWest Airlines is scheduled to take delivery of seven new E175 aircraft between Q2 2015 and the Q1 2016.

Commenting on the results, Chip Childs, SkyWest, Inc. President said, “Our first quarter results reflect strong progress on our long-term objectives to improve operating performance and reduce the number of aircraft operating in unprofitable flying contracts. During the quarter we continued execution of our fleet transition plan and we expect this transition to continue through 2016. First quarter’s positive results demonstrate solid execution of these long-term strategic objectives to improve profitability.”

Q1 2015 Capital and liquidity update

  •   SkyWest had $480 million in cash and marketable securities at March 31, 2015. Cash and marketable securities decreased $79 million during Q1 2015, primarily due to $46 million in scheduled semi-annual aircraft lease pre-payments and SkyWest’s investment of $36 million to acquire E175 aircraft and $10 million to acquire E175 spare parts and engines.
  •   Long-term debt increased $164 million from December 31, 2014 to March 31, 2015. The increase was primarily due to the issuance of $203 million of long-term debt for nine E175 aircraft delivered during Q1 2015, partially offset by principal payments made on total outstanding debt.

Copyright Photo: Mark Durbin/AirlinersGallery.com. SkyWest removed 15 Embraer EMB-120ER Brasilias from service during the quarter. Embaer EMB-120ER Brasilia N560SW (msn 120334) prepares to taxi from the gate at San Francisco International Airport (SFO).

SkyWest Airlines aircraft slide show (in-house liveries): AG Airline Slide Show

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SkyWest Airlines to bring jet service to West Yellowstone starting on June 1

SkyWest Airlines (Delta Connection) (St. George, Utah) has announced new daily jet flights from Salt Lake City to West Yellowstone starting on June 1.

Each of the new jet flights from Salt Lake City to West Yellowstone will be onboard the 50-seat Canadair Regional Jet (Bombardier) CRJ200 regional jets. There will be two daily flights Thursday through Monday and one daily flight on Tuesday and Wednesday.

SkyWest Airlines has provided scheduled passenger service to the West Yellowstone community since 1986.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. SkyWest Airlines’ Bombardier CRJ200 (CL-600-2B19) N447SW (msn 7677) prepares to depart from Long Beach.

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

Delta Connection-SkyWest Route Map:

Delta Connection-SkyWest 4.2015 Route Map

Delta to add Milwaukee – Boston flights

Delta Air Lines (Atlanta) is planning to add Delta Connection Bombardier CRJ900 service on the Milwaukee – Boston route starting on June 4 according to Airline Route.

Copyright Photo: Michael B. Ing/AirlinersGallery.com.

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

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SkyWest to upgrade United Express service at San Luis Obispo

SkyWest Airlines (St. George, Utah) has issued this statement:

United Express flights from the San Luis Obispo County Regional Airport (SBP) are getting an upgrade with new jet service! On April 7. SkyWest Airlines will begin operating daily United Express jet service from SBP to the state’s top destinations: Los Angeles (LAX) and San Francisco (SFO).

The upgraded flights will be onboard the 50-passenger Canadair Regional Jet (CRJ200). Flight schedules will also be adjusted to ensure consistent seat availability, starting with two daily flights to San Francisco and three daily flights to Los Angeles. From there, passengers will be able to easily connect onto nearly 500 daily flights to hundreds of destinations on United’s worldwide network.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Bombardier (Canadair) CRJ200 (CL-600-2B19) N958SW (msn 7833) of SkyWest Airlines climbs away from Los Angeles International Airport.

United Express-SkyWest aircraft slide show: AG Airline Slide Show

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SkyWest reports a net loss of $27.9 million in the 4Q, a net loss of $24.2 million for 2014

SkyWest, Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George, Utah) today reported financial and operating results for the quarter ended December 31, 2014.

SkyWest logo-3

 

Highlights are as follows:

Excluding special items, SkyWest’s pre-tax income was $33.5 million for the December 2014 quarter, an increase of $18.4 million over the December 2013 quarter. SkyWest’s net loss, including special items, was $(27.9) million, or $(0.54) per diluted share, for the December 2014 quarter, compared to net income of $8.6 million, or $0.17 per diluted share, for the December 2013 quarter.

The December 2014 quarter includes special item expenses of $70.0 million pre-tax ($43.6 million after-tax) due to the accelerated retirement of SkyWest’s EMB-120 turboprop aircraft and a code-share agreement modification that shortened the contract term for ExpressJet’s operation of the ERJ 145 aircraft type.

SkyWest’s pre-tax income for the December 2014 quarter, excluding special items, increased 122% from the December 2013 quarter, despite a 6.6% reduction in departures and a 4.4% reduction in completed block hours, from the December 2013 quarter. Excluding the special items, the increase in pre-tax income from the December 2013 quarter was primarily due to higher unit revenue from new and renewed flying arrangements at improved rates as described in more detail below.

For the 2014 year, SkyWest’s pre-tax income, excluding special items, was $58.4 million, compared to $98.5 million for the 2013 year. SkyWest’s net loss, including special items, was $(24.2) million, or $(0.47) per diluted share, for the 2014 year, compared to net income of $59.0 million, or $1.12 per diluted share, for the 2013 year.

Significant operational and commercial items related to the December 2014 quarter include:

SkyWest Airlines took delivery of six E175 aircraft during the quarter under its flying contract with United, which resulted in a total of 20 E175 deliveries for calendar 2014.

SkyWest is scheduled to take delivery of the remaining 20 E175s under its United agreement during the first three quarters of 2015.

SkyWest Airlines reached an agreement with Alaska to operate seven new E175 aircraft with deliveries scheduled between the third quarter of 2015 and the first quarter of 2016.

SkyWest Airlines reached an agreement with Delta to operate 12 additional used CRJ200 aircraft that SkyWest Airlines intends to lease from Delta. The aircraft deliveries started in December 2014 and are scheduled to continue through the second quarter of 2015.

SkyWest Airlines started the removal of 43 EMB-120 turboprop aircraft from service and is expected to be an all-jet operator by the conclusion of the second quarter of 2015. As of December 31, 2014, SkyWest owned 18 EMB-120s and leased 25 EMB-120s.

For the second consecutive quarter, ExpressJet’s operational reliability improved year-over-year to a 99.6% adjusted completion rate for the December 2014 quarter compared to 99.1% for the December 2013 quarter.

ExpressJet reached an agreement with American to operate 15 used ERJ 145 aircraft that ExpressJet intends to lease from American. The American ERJ 145 operation is scheduled to begin during the first quarter of 2015.

Commenting on the results, Jerry C. Atkin, SkyWest’s Chairman and CEO said, “SkyWest made significant progress in executing our long-term strategy in the fourth quarter, including reducing the total number of unprofitable aircraft and flying over time. We expect these changes to continue through 2017, as we continue to work with our major airline partners to meet their needs with larger RJ opportunities during that same period. We expect that reducing our total fleet count while improving the overall fleet composition will put us on a path of continued financial and operational improvement.”

Copyright Photo: Tony Storck/AirlinersGallery.com. ExpressJet removed 10 ERJ 145s from its United flying contract during the fourth quarter of 2014 and is returning the aircraft to United. ExpressJet removed a total of 26 ERJ 145s from its United flying contract during the 2014 year. Additionally, 59 ERJ 145s and nine ERJ 135s are scheduled to be removed from service during 2015 and to be returned to United. As of December 31, 2014, ExpressJet had 216 ERJ 145s and nine ERJ 135s operating under the United ERJ contract. ExpressJet Airlines’ Embraer ERJ 145LR (EMB-145LR) N14959 (msn 145091) arrives at Baltimore/Washington.

United Express-ExpressJet Airlines aircraft slide show: AG Airline Slide Show

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Alaska Airlines announces three more Embraer 175 routes

Alaska (2014) logo

Alaska Airlines (Seattle/Tacoma) will also inaugurate Embraer 175 operations on July 1 on three additional routes besides those previously reported. The three new routes on July 1 will be Portland, Oregon-Salt Lake City, Seattle/Tacoma-Ontario and Seattle/Tacoma-Salt Lake City.

As previously reported, the new Embraer ERJ 175 jets (a new type in Alaska colors), Alaska will begin offering daily nonstop service starting on July 1, 2015 between Seattle/Tacoma and Milwaukee, Wisconsin; Seattle/Tacoma and Oklahoma City, Oklahoma; and Portland, Oregon and St. Louis.

The 76-seat E175 jet will feature 12 seats in first class and 64 in coach, and boasts cabin dimensions on par with a Boeing 737. Onboard amenities include Wi-Fi Internet access, streaming inflight entertainment and 110 volt power in every first class seat. Food and beverage will include hot meals and picnic packs for purchase, in addition to Northwest microbrews and wine.

SkyWest Airlines (Alaska SkyWest) (St. George, UT) has purchased seven Embraer ERJ 175 aircraft to fly on behalf of Alaska under a capacity purchase agreement (CPA). The first three aircraft will arrive in the summer of 2015, and the remaining four will be delivered in the first quarter of 2016.

SkyWest logo-3

Alaska SkyWest aircraft slide show:

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