Category Archives: SkyWest Airlines

SkyWest reports net income of $41 million in the third quarter, outlines its fleet plans

United Express-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N108SY (msn 17000401) LAX (Michael B. Ing). Image: 930967.

SkyWest, Inc. (St. George, Utah) reported its financial and operating results for the third quarter of 2016, including net income of $41 million or $0.79 per diluted share, up from net income of $36 million or $0.71 per diluted share in Q3 2015. Excluding the $9 million non-cash impact of early lease return charges on six CRJ700s, adjusted diluted earnings per share was $0.90 in Q3 2016. Pre-tax income for the third quarter of 2016 was $67 million compared to $60 million in Q3 2015.

Commenting on the results, Chip Childs, SkyWest, Inc. Chief Executive Officer, said “Since early 2014, we have grown earnings by executing a complex fleet transition that added 67 new E175s and reduced our 50-seat fleet by over 120 aircraft. Our focus through 2017 will be on reducing the overall risk profile of the company, integrating the remaining deliveries of 37 E175s, optimizing how our assets and capital are deployed and positioning for future growth. Our employees have delivered amazingly well against challenging goals and have again provided our customers with solid operating performance, despite the significant changes to our fleet during the quarter.”

SkyWest’s total fleet in service decreased by 13 aircraft during the third quarter of 2016 as follows:

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Alaska SkyWest (SkyWest Airlines) Bombardier CRJ700 (CL-600-2C10) N223AG (msn 10010) LGB (Michael B. Ing). Image: 924092.

Above Copyright Photo: Alaska SkyWest (SkyWest Airlines) Bombardier CRJ700 (CL-600-2C10) N223AG (msn 10010) LGB (Michael B. Ing). Image: 924092.

SkyWest’s total fleet in service decreased by 14 aircraft from September 30, 2015 to September 30, 2016 as follows:

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During Q3 2016, SkyWest redeployed six CRJ700 aircraft into service under a multi-year agreement with American and redeployed four CRJ700 aircraft into service under a multi-year agreement with Delta.

SkyWest previously operated the combined 10 CRJ700s under an agreement that expired with United. A total of 37 CRJ700 aircraft with scheduled contract expirations with United are scheduled to be redeployed with American by mid-2017, eliminating the related financing tail risk on these aircraft through 2019.

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Copyright Photo: American Eagle Airlines (2nd)-SkyWest Airlines Bombardier CRJ200 (CL-600-2B19) N492SW (msn 7168) LAX (Michael B. Ing). Image: 927579.

SkyWest anticipates its CRJ200 fleet and its ERJ145 fleet (“50-Seat Aircraft”) will be reduced by approximately 16 aircraft by the end of 2016 as a result of flying agreement expirations with multiple major partners. During Q3 2016, SkyWest extended the contract term on nine CRJ200s with American from the end of 2016 to the end of Q3 2017.

Under a previously announced lease return arrangement, SkyWest is currently scheduled to return 11 additional CRJ700s over the next six months. If the aircraft are returned as scheduled, SkyWest anticipates largely non-cash termination costs of approximately $15-17 million (pre-tax), which will be recognized as the aircraft are removed from service and processed.

The following table outlines SkyWest’s anticipated delivery schedule for new E175 aircraft through the end of 2017:

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Top Copyright Photo: United Express-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N108SY (msn 17000401) LAX (Michael B. Ing). Image: 930967.

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SkyWest to fly between Seattle/Tacoma and San Luis Obispo for Alaska Airlines

SkyWest to fly between Seattle/Tacoma and San Luis Obispo for Alaska Airlines

Alaska Airlines will launch daily, nonstop service between its Seattle/Tacoma hub and San Luis Obispo, California, on April 13, 2017. Located just south of the city of San Luis Obispo, San Luis Obispo County Regional Airport serves travelers from as far north as Southern Monterey County and as far south as Northern Santa Barbara County.

The year-round service will be operated by SkyWest Airlines using Embraer E175 jets, featuring 12 seats in first class, 12 seats in Preferred Plus and 52 seats in the main cabin. The E175 boasts cabin dimensions on par with a Boeing 737.

Copyright Photo: Alaska SkyWest (SkyWest Airlines) Embraer ERJ 170-200LR (ERJ 175) N170SY (msn 17000483) SEA (Tony Storck). Image: 928988.

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United to add Denver – Richmond flights

United Express-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N114SY (msn 17000410) YYZ (TMK Photography). Image: 930968.

United Airlines (Chicago) will add daily United Express Embraer 175 service (operated by SkyWest Airlines) between the Denver hub and Richmond, Virginia starting on April 5 according to Airline Route.

Copyright Photo: TMK Photography/AirlinersGallery.com. SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N114SY (msn 17000410) taxies at Toronto (Pearson).

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Delta to start Los Angeles – Denver flights

Delta Connection-SkyWest Airlines Bombardier CRJ900 (CL-600-2D24) N807SK (msn 15082) LAX (Michael B. Ing). Image: 929995.

Delta Air Lines (Atlanta) will launch five daily flights from Los Angeles International Airport to Denver International Airport beginning June 1, 2016.

In 2016, Delta will begin operating Boeing 717 aircraft on all Delta Shuttle flights between Los Angeles and San Francisco, increase to 10 daily flights to both New York-JFK and Seattle/Tacoma and add a third daily flight to Boston. Delta’s seat growth in Los Angeles has grown more than 99 percent since 2009, the most of any carrier.

Delta’s Los Angeles to Denver flights will be operated by Delta Connection carrier SkyWest Airlines (St. George) using two-class, 76-seat Bombardier CRJ900 aircraft.

Delta operates 160 peak-day departures to 60 destinations from Los Angeles.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Bombardier CRJ900 (CL-600-2D24) N807SK (msn 15082) of SkyWest Airlines departs from LAX.

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SkyWest reports a 3Q net profit of $36 million

SkyWest, Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George, Utah) today reported financial and operating results for the quarter ended September 30, 2015.

SkyWest generated $36 million of net income for Q3 2015, or $0.71 per diluted share. Excluding special items, SkyWest’s net income for Q3 2014 was approximately $26 million, or $0.50 per diluted share.

Operating income for Q3 2015 was $78 million, an increase of 32% from Q3 2014 of $59 million.

SkyWest reported $77 million of net income for the nine months ended September 30, 2015, or $1.49 per diluted share, a $88 million improvement from the corresponding period of 2014, which had net loss of $11 million, excluding 2014 special items.

Commenting on the results, Chip Childs, SkyWest, Inc. President said, “Our third quarter results reflect continued progress in the optimization of our fleet and flying contract mix. These improvements, along with solid operating performance, have contributed to our increasing operating margins. Additionally, we look forward to operating the E175 aircraft with three of our major partners by mid-2016, and we believe our operating performance continues to create additional opportunities to improve our fleet mix and operating margins.”

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Fleet Information:

Total aircraft in service at September 30, 2015 was 656, a net decrease of 84 aircraft from September 30, 2014 of 740 aircraft. Changes in SkyWest’s fleet mix are as follows:

Added 26 new E175 aircraft with United Airlines (“United”)
Added three new E175 aircraft with Alaska Airlines (“Alaska”)
Added twelve used CRJ200 aircraft with Delta Air Lines (“Delta”)
Added 16 used ERJ145 aircraft with American Airlines (“American”)

Combined, 57 aircraft were added year-over-year

Removed 36 EMB120 30-seat turbo-prop aircraft (“EMB120s”) from multiple partners
Removed 69 ERJ145/135 aircraft from service from United
Removed 36 CRJ200 aircraft from service with multiple partners

Combined, 141 aircraft were removed year-over-year

SkyWest’s aircraft in service decreased by 20 net aircraft from June 30, 2015 to September 30, 2015, with changes in fleet mix as follows:

Added five new E175 aircraft with United
Removed eleven ERJ145 aircraft from service with United
Removed 14 CRJ200 aircraft from service from multiple major airline partners

Under its fleet transition, SkyWest generated approximately 24,800 additional block hours with its dual class aircraft (CRJ700s/900s and E175s) during Q3 2015, compared to Q3 2014.

SkyWest also had a reduction of approximately 89,000 block hours with its less profitable 50-seat and smaller aircraft (CRJ200s, ERJ145s/135s and EMB120s) during Q3 2015, compared to Q3 2014.

Under an agreement announced in Q3 2015, SkyWest Airlines is scheduled to place 18 additional new E175 aircraft into service with United, with anticipated scheduled delivery dates from Q4 2016 to Q2 2017. SkyWest Airlines is currently scheduled to have a total of 58 E175s in service with United by the end of Q2 2017.

Under a previously announced agreement, SkyWest Airlines is scheduled to take delivery of twelve new E175 aircraft for Alaska from Q4 2015 to Q4 2016. SkyWest is currently scheduled to have a total of 15 E175s in service with Alaska by the end of Q4 2016.

Under an agreement announced last week, SkyWest Airlines is scheduled to take delivery of 19 new E175 aircraft for Delta from Q3 2016 through mid-2017.

The following reflects expected E175 aircraft that SkyWest anticipates will be placed into service by period:
Airline Q4 2015  2016  2017   Cumulative Total End of 2017
United         –            7        11                        58
Delta            –         13          6                        19
Alaska         2         10          –                         15
Total            2         30        17

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Copyright Photo: Tony Storck/AirlinersGallery.com. SkyWest Airlines is already operating the Embraer 175 for Alaska Airlines. Alaska Skywest-titled Embraer ERJ 170-200LR (ERJ 175) N170SY (msn 17000483) taxies at Seattle-Tacoma International Airport (SEA).

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SkyWest to operate 19 new Embraer 175s for Delta

Embraer 175 (Flt)(Embraer)(LR)

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

SkyWest (red-blue) logo (LRW)

SkyWest, Inc. announced today that it has entered into a Capacity Purchase Agreement (CPA) with Delta Air Lines (Atlanta) to operate 19 new Embraer E175 dual-class regional jet aircraft. SkyWest has determined that these 19 E175 aircraft will be operated by SkyWest Airlines, Inc. (St. George) a wholly-owned subsidiary of SkyWest. The CPA is under terms and conditions similar to SkyWest’s existing Delta agreements.

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“SkyWest is a longtime Delta partner, and we’re pleased to advance our partnership with an additional aircraft type,” said Chip Childs, SkyWest, Inc. President. “As we continue to evolve our fleet mix, we look forward to continuing to deliver what our partners need through solid, reliable service.”

The aircraft will be flown in 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 August 2016, with all 19 aircraft being delivered by mid-2017.

In related news, Embraer and SkyWest, Inc. have signed a firm order for an additional 19 E175s jets. The aircraft will be flown by SkyWest Airlines, Inc. a wholly-owned subsidiary of SkyWest, under a Capacity Purchase Agreement (CPA) with Delta Air Lines. The transaction will be included in Embraer’s 2015 fourth-quarter backlog. Delivery of the first aircraft is expected for the third-quarter of 2016.

SkyWest Airlines currently operates the E175 for Alaska Airlines (Alaska SkyWest) and United Airlines (United Express).

Image: Embraer.

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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/AirlinersGallery.com. 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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