Tag Archives: American Eagle

SkyWest manages to turn a profit in the first quarter

American Eagle Airlines (2nd)-SkyWest Airlines Bombardier CRJ700 (CL-600-2C10) N703SK (msn 10139) LAX (Michael B. Ing). Image: 937551.

SkyWest has issued this financial statement for the first quarter 2021:

First Quarter 2021 Highlights

  • Pre-tax income of $50 million, net income of $36 million, or $0.71 per diluted share
  • Placed nine used CRJ700 aircraft into service under a previously announced agreement with American Airlines; took delivery of one new CRJ900 aircraft under a previously announced agreement with Delta Air Lines
  • Named to Forbes America’s Best Employers 2021 List; also named a Best Place to Work in 2021, a Glassdoor Employees’ Choice Award

SkyWest, Inc. has reported financial and operating results for Q1 2021, including net income of $36 million, or $0.71 per diluted share, compared to net income of $30 million, or $0.59 per diluted share, for Q1 2020. Pre-tax income for Q1 2021 included $193 million in payroll support program grants received from U.S. Treasury Department (“U.S. Treasury”) reflected as a reduction to operating expenses.

Commenting on the results, Chip Childs, Chief Executive Officer of SkyWest, said, “We continued to see improvement in the demand for our product during the first quarter. Our strategy of investing in our fleet and delivering flexible solutions with solid operating performance to our customers continues to position SkyWest well for long-term success. I want to thank the SkyWest team for their commitment to excellence through these dynamic and challenging circumstances.”

Financial Results

Revenue was $535 million in Q1 2021, down from $730 million in Q1 2020, or 27%, due to a significant reduction in the number of flights SkyWest was scheduled to operate under its flying agreements compared to the same period last year because of the COVID-19 pandemic. SkyWest’s Q1 2021 completed departures and block hours were down 26% and 23%, respectively, from Q1 2020.

SkyWest deferred recognizing revenue on $21 million of fixed monthly payments received during Q1 2021. SkyWest will recognize the deferred revenue from the fixed monthly payments on a per-completed, block hour basis over the remaining contract term.

Operating expenses were $454 million in Q1 2021, down from $664 million in Q1 2020, or 32%. The reduction was due to $193 million in payroll support program grants received from U.S. Treasury under a payroll support program extension agreement (“PSP2”) reflected in the Q1 2021 results. Operating expenses were also down due to fewer flights operated in Q1 2021 compared to the same period last year, partially offset by an increase in maintenance expense on SkyWest’s CRJ700 fleet.

Capital and Liquidity

SkyWest had $836 million in cash and marketable securities at March 31, 2021, up from $826 million at December 31, 2020.

SkyWest has $665 million of available borrowings under its $725 million, five-year secured loan facility with U.S. Treasury under the CARES Act. SkyWest has until May 28, 2021 to borrow additional amounts under the facility and is evaluating its future utilization of the facility.

SkyWest has a $75 million line of credit facility with approximately $34 million of letters of credit issued under the facility and $41 million available under the line at March 31, 2021.

As previously announced, SkyWest entered into PSP2 with U.S. Treasury in January 2021 and received total proceeds of $233 million during Q1. In consideration for the funding, approximately $40 million was in the form of a ten-year, low interest unsecured term loan and SkyWest issued to U.S. Treasury warrants to purchase 98,815 shares of SkyWest common stock at a strike price of $40.41. In April 2021, SkyWest received additional proceeds of approximately $35 million under PSP2. In consideration of the additional funding, approximately $10.5 million was in the form of a ten-year, low interest unsecured term loan and SkyWest issued to U.S. Treasury warrants to purchase an additional 25,958 shares of SkyWest common stock at a strike price of $40.41.

Total debt at March 31, 2021 was $3.1 billion, down from $3.2 billion at December 31, 2021. Capital expenditures during Q1 2021 were $56 million for the purchase of four used CRJ700 aircraft, spare engines and other fixed assets.

As previously announced, SkyWest entered into a payroll support program 3 agreement (“PSP3”) with U.S. Treasury in April 2021 to receive total proceeds of approximately $250 million under the American Rescue Plan Act of 2021. SkyWest received half of the $250 million in April 2021 and expects to receive the remainder during the second quarter of 2021. In consideration for the funding, approximately $45 million will be in the form of a ten-year, low interest unsecured term loan, and SkyWest will issue to U.S. Treasury warrants to purchase approximately 78,317 shares of SkyWest common stock at a strike price of $57.47.

Status Update on Previously Announced Agreements

SkyWest is coordinating with its major airline partners to optimize the timing of upcoming fleet deliveries under previously announced agreements in response to COVID-19 schedule reductions. The anticipated future delivery dates summarized below are based on currently available information and are subject to change.

Flying contract with Delta Air Lines (“Delta”)

  • One new CRJ900, financed by Delta and operated by SkyWest was delivered in Q1 2021,

Flying contract with American Airlines (“American”) for 20 E175 aircraft

  • 18 aircraft deliveries are anticipated in the second half of 2021 and two deliveries are expected in 2022. The aircraft are scheduled to be placed into service in 2022.
  • SkyWest anticipates financing the aircraft through debt,

Flying contract with American for CRJ700 aircraft

  • SkyWest placed nine used CRJ700s in service during Q1 2021.
  • SkyWest anticipates placing an additional 16 used CRJ700s into service over the remainder of 2021.
  • SkyWest expects to have 90 CRJ700s under agreement with American by the end of 2021.

Top Copyright Photo: American Eagle Airlines (2nd)-SkyWest Airlines Bombardier CRJ700 (CL-600-2C10) N703SK (msn 10139) LAX (Michael B. Ing). Image: 937551.

American Eagle-SkyWest aircraft slide show:

American Eagle Route Map:

Farewell Gate 35X: American Airlines welcomes customers to a new regional concourse at Ronald Reagan Washington National Airport

American Airlines has made this announcement:

New 14-gate concourse transforms the travel experience, offering customers a more seamless journey to and from the nation’s capital

  • American transitions regional flight operations from Gate 35X to new 14-gate concourse at Reagan National Airport (DCA).
  • New concourse offers a one-to-one replacement of remote hardstand gates with new indoor gate areas, climate-controlled jet bridges and customer amenities.
  • Up to 85 daily departures scheduled from Gates 46-59 in the new concourse this summer.

This morning, American Airlines began welcoming customers to a new, state-of-the-art 14-gate regional concourse at Ronald Reagan Washington National Airport (DCA), designed to replace Gate 35X.

The new concourse, constructed by the Metropolitan Washington Airports Authority (MWAA) as part of a $1 billion initiative to transform the customer experience at DCA, provides customers a range of new amenities while offering a more seamless connection to the National Capital Region.

“The dreaded Gate 35X is no more! American’s new regional concourse at Reagan National Airport is fantastic news for our customers,” said Robert Isom, president of American Airlines. “When fully complete, the investments made in partnership with MWAA will finally enable American to deliver a convenient, accessible, world-class product befitting the gateway to our nation’s capital.”

Fourteen spacious new boarding areas replace the cramped and dated waiting room for Gate 35X.

Floor-to-ceiling windows with views of Washington, D.C. and a range of new seating options with integrated power provide customers more room to relax and recharge before their flight.

The new concourse incorporates more than 850 new seats in a range of styles and configurations for improved customer comfort.

A final farewell to Gate 35X

Since Terminal B/C opened in 1997, Gate 35X has served as the primary gateway for millions of customers traveling to and from the nation’s capital on flights operated by American’s regional partners. At its peak, more than 6,000 customers a day passed through its cramped corridors and onto buses before boarding a flight parked at one of 14 remote hardstand gates.

Before the coronavirus (COVID-19) pandemic, operations from Gate 35X accounted for 16% of all customer traffic and 30% of all departures from DCA. But due to schedule reductions driven by COVID-19, Gate 35X was temporarily closed for most of 2020. As a result, airport partners were able to accelerate portions of construction — completing key components of the new concourse early.

Gate 35X was reactivated to support an increase in flight activity earlier this year. To commemorate the last of more than 250,000 departures from Gate 35X, American, Piedmont and PSA Airlines team members joined together last night to send off flight 5482 as it departed for Albany, New York (ALB).

Transforming the customer journey

Comprised of 14 spacious gate areas and enclosed jet bridges connected to DCA’s existing Terminal B/C, the 225,000 square-foot regional concourse offers a completely new experience for customers as they return to the skies.

“The opening of the new concourse is the culmination of years of work by thousands of employees who overcame numerous challenges and the seismic changes of a global pandemic to deliver a world-class passenger experience at Washington, D.C.’s airports,” said John E. Potter, president and chief executive officer of the Airports Authority. “The airport’s $1 billion investment to transform the traveler experience inside the terminals at the gates and along the roadways will bring a new era of travel to American Airlines’ customers, who can now board regional jet aircraft from jet bridges instead of through Gate 35X.”

Customers departing on regional flights from Gates 46-59 are now able to relax and recharge in one of 850 new seats while enjoying panoramic views of the Washington, D.C., skyline. Additionally, customers can take advantage of new amenities, including four public restrooms, two mother’s care rooms and an indoor pet relief area. When complete, the new concourse will also include more than 10 new shopping and dining options and a new 14,000 square-foot Admirals Club — currently scheduled to open in 2022.

Behind the scenes, more than 20,000 square-feet of space on the ramp level will serve as home to American’s wholly-owned regional subsidiaries Piedmont and PSA Airlines — providing team members new break areas, workspaces and locker rooms. A new baggage handling system will help expedite the luggage off-load and transfer process, further enhancing the overall customer experience.

Restoring service to the nation’s capital

In response to increasing demand, American plans to operate up to 180 peak day departures from DCA this summer — restoring service to more than 15 markets served before the pandemic, including Hilton Head, South Carolina (HHH); Traverse City, Michigan (TVC); and Asheville, North Carolina (AVL). To accommodate regional flights, up to 85 daily departures are scheduled to operate from the new concourse this summer.

As demand for air travel returns, American plans to provide service on larger regional aircraft operating to and from DCA — adding seat capacity without increasing the number of scheduled flights. Long-term, American intends to operate regional flights with the 65-seat Bombardier CRJ-700, the 76-seat CRJ-900 and the Embraer E175, offering customers a premium two-cabin experience.

Most of PSA Airlines’ fleet is “temporarily grounded” by the FAA, major cancellations

PSA Airlines (American Eagle) (subsidiary of American Airlines) has been “temporarily grounded” by the Federal Aviation Administration for an inspection issue on nearly all of its planes according to CNN.

Over 230 flights has already been cancelled so far.

PSA Airlines largely operates from the Charlotte, Washington (Reagan National) and Philadelphia hubs.

Route Map:

According to CNN, “American Airlines said that most of PSA’s 130 aircraft had been pulled from service “out of an abundance of caution” to perform a “necessary, standard inspection” of the nose landing-gear doors.”

Photo: Syracuse Airport.

PSA Airlines issued this statement:

Most of our aircraft have temporarily been removed from service to complete a standard inspection. We’re working to resolve the issue and sincerely apologize to our customers for the inconvenience.

Mesa to operate 40 Bombardier CRJ900s for American for another 5 years

Mesa Air Group, Inc. announced las month that it has finalized a new contract, which replaces the previous agreement with American Airlines, to operate 40 Bombardier CRJ900s for a five-year term beginning January 1, 2021 through December 31, 2025.

Under the previous contract 30 CRJ900 aircraft were set to expire in 2021 with an additional 17 expiring in 2022.

American Eagle-Mesa aircraft photo gallery:

American Eagle-Mesa aircraft slide show:

SkyWest makes a profit in the third quarter, will fly 20 more CRJ700s and 20 E175s for American

SkyWest, Inc. has reported its financial and operating results for Q3 2020, including net income of $34 million, or $0.66 per diluted share, compared to net income of $91 million, or $1.79 per diluted share, for Q3 2019. The primary factor in SkyWest’s lower results in Q3 2020 compared to Q3 2019 was reduced flight schedules and lower demand resulting from the COVID-19 pandemic.

Commenting on the results, Chip Childs, Chief Executive Officer of SkyWest, said, “Over the past several months, we have worked with our partners and our people to respond quickly and aggressively to the worst crisis our industry has experienced. The SkyWest team continues to demonstrate exceptional dedication and flexibility, and I want to thank them for their hard work and focus through this challenge. We are committed and remain laser-focused on ensuring we are positioned for the long-term, maintaining strong liquidity, and delivering on our partners’ objectives in the recovery.”

Financial Results
Revenue was $457 million in Q3 2020, down from $760 million in Q3 2019, due to the COVID-19 pandemic that caused a significant reduction in the number of scheduled flights SkyWest operated under its flying contracts compared to the same period last year. Total block hours in Q3 2020 were down 41% from Q3 2019.

SkyWest deferred recognizing revenue on $30 million of fixed monthly payments received during Q3 2020, down from $69 million of revenue that was deferred in Q2 2020. SkyWest will recognize the deferred revenue based on completed flights over the remaining contract term.

Operating expenses were $383 million in Q3 2020, down from $614 million in Q3 2019 due to fewer flights operated compared to the same period last year, with $190 millionin CARES Act payroll support (described under “Capital and Liquidity” below) recognized as an offset to salaries and wages expense in Q3 2020. SkyWest anticipates recognizing the remaining $3 million in payroll support grants in Q4 2020.

New Deals
SkyWest secured an agreement to place 20 used CRJ700s under a multi-year flying contract with American Airlines. SkyWest anticipates using its own aircraft not currently under contract with a partner to fulfill this agreement. The aircraft are expected to be placed into service ratably throughout 2021. Following the placement of these 20 aircraft, combined with anticipated placement of four CRJ700s in Q4 2020 and five CRJ700s in 2021 under a previously announced deal, SkyWest is scheduled to have a total of 90 CRJ700s under contract with American by the end of 2021. 

SkyWest also secured agreements to acquire 21 used CRJ700s in a 50-seat configuration and lease the aircraft under a multi-year term to another regional airline operating for United Airlines. The aircraft purchases and leases are expected to be completed in Q4 2020.

Status Update on Previously Announced Deals
SkyWest is coordinating with its major airline partners to optimize the timing of upcoming fleet deliveries under previously announced deals in response to COVID-19 schedule reductions. The anticipated future delivery dates summarized below are based on currently available information and are subject to change.

Flying contract with Delta Air Lines (“Delta”)

  • Four new E175 aircraft to be financed and operated by SkyWest are scheduled for delivery in Q4 2020. Normal cash down payments are already covered by deposits paid last year.
  • One new CRJ900 aircraft to be financed by Delta and operated by SkyWest is scheduled for delivery in 2021.

Flying contract with American for E175 aircraft
Twenty new E175 aircraft to be financed and operated by SkyWest:

  • Five aircraft deliveries are anticipated in Q4 2021 and 15 deliveries in 2022
  • SkyWest anticipates financing the aircraft through debt

Flying contract with Delta for CRJ200 aircraft
As previously announced, SkyWest’s capacity purchase agreement with Delta for CRJ200 aircraft is scheduled to expire in 2020. SkyWest owns the remaining 17 CRJ200 aircraft under contract with Delta as of September 30, 2020. SkyWest has no outstanding financing obligations on these 17 CRJ200 aircraft and anticipates these aircraft will be fully depreciated upon removal from the Delta contract.

Capital and Liquidity
SkyWest had $822 million in cash and marketable securities at September 30, 2020, up from $762 million at June 30, 2020. Total debt at September 30, 2020 was $3.1 billion, up from $3.0 billion at June 30, 2020. Capital expenditures during Q3 2020 was $10 million for a spare engine and other maintenance assets.

During Q3 2020, as previously announced, SkyWest and SkyWest Airlines entered into a $573 million, five-year secured loan facility with the U.S. Treasury Department (“Treasury”) under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). SkyWest Airlines borrowed the minimum required $60 million under the facility at closing. In October, SkyWest increased its loan capacity under this facility to $725 million. SkyWest Airlines has until March 2021 to borrow additional amounts under the facility. SkyWest issued warrants to purchase 211,416 shares of common stock to Treasury in conjunction with the initial $60 million draw.

During Q3 2020, SkyWest received $144 million in payroll support funding, including $101 million in grants and $43 million in unsecured debt, under the previously announced Payroll Support Program Agreement (“PSP Agreement”) with Treasury. In aggregate, SkyWest received $450 million under the PSP Agreement in 2020, including $345 million in direct grants and $105 million in unsecured debt. SkyWest recognized $152 million and $190 million in payroll grant expense reductions in Q2 2020 and Q3 2020, respectively, and anticipates recognizing the remaining $3 millionin Q4 2020.

As of September 30, 2020, SkyWest had a $75 million line of credit facility. SkyWest had approximately $35 million of letters of credit issued under the facility and $40 million available under the line at quarter-end.

American Eagle-SkyWest aircraft photo gallery:

American Eagle ERJ 145 N674RJ skids off the runway at Freeport, Bahamas

American Eagle Embraer ERJ 145 N674RJ operating as flight AA 4194 from Miami skid off the runway at Freeport, Bahamas while landing on October 24, 2020 due to “an issue with the rear landing gear”.

The flight from the Miami hub was operated by Envoy Air.

More from WSVN Channel 7 News in Miami.

Social Media:

Trans States N619AE slides off a snowy runway at Chicago O’Hare

Trans States Airlines, operating flight AA 4125 from Greensboro to Chicago (O’Hare) on November 11 with Embraer ERJ 145 N619AE slide off the left side of the runway on landing at ORD. The right main gear collapsed. There were no injuries.

Social media:

American to add nonstop DFW – Hilton Head Island service + Chicago and Philadelphia

American Airlines is adding a new nonstop spoke route from the Dallas/Fort Worth hub to Hilton Head Island, SC. (HHH).

The new weekly seasonal route will operate from March 7 through August 15.

The carrier will also begin flying from Hilton Head Island to its Chicago (O’Hare) and Philadelphia hubs also on March 7, 2020.

Hilton Head Island will be served with Embraer 175 aircraft.

American currently has service between its Charlotte hub and Hilton Head Island.

American to add new domestic routes later this year

American Eagle Airlines (2nd)-SkyWest Airlines Bombardier CRJ200 (CL-600-2B19) N955SW (msn 7817) PHX (Keith Burton). Image: 946556.

American Airlines is planning to add new domestic routes from its hubs later this year according to Airline Route:

Chicago O’Hare – Charleston, WV – daily SkyWest CRJ200 effective September 4, 2019
Dallas/Ft. Worth – St. George – daily SkyWest CRJ200 effective September 26, 2019


Miami – Bentonville/Northwest Arkansas – daily Republic Airline Embraer 175 effective December 18, 2019


Miami – Columbia, SC – daily Envoy Air Embraer ERJ 145 effective December 18, 2019
Miami – Oklahoma City – daily Republic Airline Embraer 175 effective December 18, 2019
Philadelphia – Vail/Eagle, CO – weekly mainline Boeing 757-200 effective December 21, 2019
Phoenix – Rapid City, SD (Black Hills/Mount Rushmore) – daily SkyWest CRJ200 effective September 4, 2019

Top Copyright Photo: American Eagle Airlines (2nd)-SkyWest Airlines Bombardier CRJ200 (CL-600-2B19) N955SW (msn 7817) PHX (Keith Burton). Image: 946556.

American Eagle-SkyWest aircraft slide show:

PSA Airlines pilot is arrested for three murders before flight

A PSA Airlines pilot was arrested at Louisville International Airport before his flight. The pilot was taken into custody and is being charged for three murders in November 2015 in Pembroke, KY.

Read more from ABC channel 13 WBKO: CLICK HERE