SkyWest, Inc. (St. George) announced today that it expects its financial results for the quarter ended December 31, 2011, to be lower than previously anticipated. Due primarily to the reasons outlined below, SkyWest currently estimates that its financial results for the fourth quarter of 2011 will reflect a net loss between $(17.0) million and $(18.5) million, resulting in a basic and fully-diluted loss per share between $(0.34) and $(0.37) per share. SkyWest cautioned, however, that these estimates are preliminary and are subject to modification or revision in the course of completing SkyWest’s year-end review procedures.
According to the group, there were three primary factors that contributed to SkyWest’s determination of the estimated net loss for the fourth quarter of 2011. First, SkyWest’s operating airlines have incurred additional maintenance charges due to aging aircraft issues, timing and cost of heavy airframe checks, and the timing of certain engine overhauls. These additional costs are estimated to be approximately $12.0 million (pre-tax) for the quarter ended December 31, 2011. Second, SkyWest’s operating airlines continued to experience additional crew costs estimated to be approximately $5.0 million (pre-tax) for the quarter ended December 31, 2011. SkyWest’s operating airlines have continued to incur additional pilot training costs as a result of the need for additional pilots to fly increased block hours as scheduled by our major partners and from incurring a higher level of training in off-peak times. Third, SkyWest maintains an ownership position in two international regional airlines, TRIP and Air Mekong. SkyWest management currently estimates that SkyWest will recognize losses attributable to these entities that are approximately $5.5 million (pre-tax) more than our previous estimates for the quarter ended December 31, 2011.
A more detailed explanation of the items that affected SkyWest’s financial results for the quarter ended December 31, 2011 will be provided when SkyWest announces its financial results for the quarter, which is currently estimated to occur in mid February 2012.
SkyWest is the holding company for two scheduled passenger airline operations, namely SkyWest Airlines (St. George, Utah) and ExpressJet Airlines (Atlanta, Georgia).
SkyWest Airlines operates as United Express and Delta Connection carriers under contractual agreements with United Airlines, Inc. (Chicago) and Delta Air Lines, Inc. (Atlanta). SkyWest Airlines also operates as US Airways Express under a contractual agreement with US Airways, Inc., and operates flights for Alaska Airlines under a contractual agreement. ExpressJet Airlines operates as United Express and Delta Connection carriers under contractual agreements with United and Delta. System-wide, SkyWest serves markets in the United States, Canada, Mexico and the Caribbean with approximately 3,700 daily departures and a fleet of approximately 730 regional aircraft.
Atlantic Southeast Airlines has now been merged into ExpressJet Airlines.
Copyright Photo: James Helbock.
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