Tag Archives: 17000483

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.”

SkyWest (red-blue) logo (LRW)

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 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.

SkyWest logo-4

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:

Alaska (2014) logo

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.

SkyWest gets ready for Embraer 175 operations for Alaska Airlines with the first delivery

SkyWest Airlines (Alaska SkyWest) (St. George, Utah) has taken delivery of its first new Embraer ERJ 170-200LR (ERJ 175) in preparation of its new Embraer-operated Alaska SkyWest service. The pictured N170SY (msn 170900483) was handed over on June 1 in Brazil.

Alaska Airlines (Seattle/Tacoma) as previously reported, will begin offering daily nonstop service starting on July 1, 2015 between the Seattle/Tacoma hub 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 has purchased seven Embraer E175 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.

Copyright Photo: Raul Sepulveda/AirlinersGallery.com. N170SY passed through San Juan yesterday on its long delivery route.

Alaska Airlines aircraft slide show: AG Airline Slide Show

Alaska SkyWest aircraft slide show: AG Airline Slide Show