Tag Archives: Delta Connection

SkyWest, Inc. announces a second quarter 2019 profit

SkyWest, Inc. issued this financial report:

Second Quarter Highlights:

  • Net income of $88 million, or $1.71 per diluted share, up from $76 million, or $1.43 per diluted share in Q2 2018
  • Pre-tax income of $115 million, up from $98 million in Q2 2018
  • Placing ten used CRJ700s into a flying contract with American Airlines beginning early 2020

SkyWest, Inc. has reported its financial and operating results for Q2 2019, including net income of $88 million, or $1.71 per diluted share, compared to net income of $76 million, or $1.43 per diluted share, for Q2 2018. Pre-tax income in Q2 2019 was $115 million, a 17% increase from Q2 2018 primarily due to SkyWest’s ongoing fleet transition. SkyWest has added 25 new E175 aircraft and 11 new CRJ900 aircraft since Q2 2018 and has reduced aircraft ownership costs through early lease buyouts on 52 aircraft executed in early 2019.

Commenting on the results, Chip Childs, Chief Executive Officer and President of SkyWest, said, “This quarter we were pleased to demonstrate our ability to deploy capital and unlock growth opportunities within our partners’ existing scope constraints. I want to thank our outstanding SkyWest professionals for the service they provide to our customers.”

Financial Highlights
Revenue was $744 million in Q2 2019, down from $806 million in Q2 2018 due to the sale of ExpressJet Airlines (“ExpressJet”) in January 2019. Excluding ExpressJet revenue in Q2 2018, Q2 2019 revenue increased $82 million, primarily from adding 36 new aircraft since Q2 2018.

Operating expenses were $600 million in Q2 2019, down from $679 million in Q2 2018 also due to the sale of ExpressJet. Excluding ExpressJet operating expenses in Q2 2018, Q2 2019 operating expenses increased $70 million, primarily from growth in operations as a result of additional aircraft placed into service since Q2 2018 and from higher labor costs.

Operational Update
Flying contract updates
SkyWest announced an agreement with American Airlines to place ten used CRJ700s under a multi-year contract beginning early 2020. SkyWest anticipates acquiring seven CRJ700 aircraft from a third party and internally sourcing three CRJ700 aircraft through upcoming scheduled contract expirations.

Delivery update on new aircraft for Delta
E175 aircraft to be financed by SkyWest and operated by SkyWest:

  • Four aircraft delivered in Q2 2019
  • Four aircraft scheduled for delivery in mid-2020

 

SkyWest expects to remove four CRJ900 aircraft under its Delta agreement in 2020 and to return those aircraft to the lessor. SkyWest has previously removed five CRJ900s from service under its agreement with Delta and is leasing these five aircraft to a third party under a six-year term.

CRJ900 aircraft to be financed by Delta and operated by SkyWest for Delta:

  • Three aircraft delivered in Q2 2019
  • One aircraft scheduled for delivery in Q3 2019
  • Eight aircraft scheduled for delivery in 2020

SkyWest expects to remove a used CRJ700 from its contract with Delta as each of these CRJ900 financed by Delta is placed into service. As previously announced, SkyWest anticipates transitioning the CRJ700s removed under this arrangement with Delta to an agreement with American.

Lease agreement with a third party for 29 CRJ700 aircraft
SkyWest placed one of 29 CRJ700 aircraft under a previously announced lease agreement to a third party for a ten-year term during Q2 2019. SkyWest anticipates the remaining aircraft will be placed under lease in increments through mid-2020.

Capital and Liquidity

SkyWest had $550 million in cash and marketable securities at June 30, 2019, up from $544 millionat March 31, 2019. During the second quarter of 2019, SkyWest:

  • Used $35 million to repurchase stock under SkyWest’s $250 million share repurchase program
  • Used $14 million toward the purchase of four E175 aircraft (total capital expenditure of $88 million on the acquired aircraft including debt issued)
  • Used $23 million for other capital investments, primarily related to spare engines, aircraft parts and maintenance assets, net of proceeds from sale of fixed assets

Total debt at June 30, 2019 and March 31, 2019 was $3.1 billion. Q2 2019 ending debt balance included debt issued for four E175 aircraft acquired during the quarter, offset by principal payments.

All photos by the airline.

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Delta adds Santa Barbara to its route map with service from the Salt Lake City hub

Delta Connection-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N250SY (msn 17000610) SNA (Michael B. Ing). Image: 945472.

Delta Air Lines has made this announcement:

Delta is making the ‘American Riviera’ more accessible than ever with the launch of three daily year-round flights from Salt Lake City International Airport to Santa Barbara Airport, a new destination on Delta’s route map, on August 12, 2019.

Santa Barbara will become the 330th destination in Delta’s expanding network and the 13th city in California served by the airline. Combined with the start of other new routes – including Detroit-San Jose in November 2018, Atlanta-Ontario in April, Detroit-Sacramento in June, and Atlanta-Burbank in July – Delta will grow the number of seats it offers from California by eight percent.

​For Delta’s hub in Salt Lake City, Santa Barbara is the latest in a series of destinations that have been added in the last two years, including Cleveland, Ohio; Columbus, Ohio; El Paso, Texas; Fort Lauderdale, Florida; Milwaukee, Wisconsin; Pittsburgh, Pennsylvania; and Tampa, Florida.

The flights will operate on the following schedule and are now available for sale:

Departs Arrives
Salt Lake City (SLC) at 11:05 a.m. Santa Barbara (SBA) at 12:16 p.m.
Salt Lake City (SLC) at 3 p.m. Santa Barbara (SBA) at 4:11 p.m.
Salt Lake City (SLC) at 8:30 p.m. Santa Barbara (SBA) at 9:39 p.m.
Santa Barbara (SBA) at 6 a.m.* Salt Lake City (SLC) at 8:57 a.m.
Santa Barbara (SBA) at 1:05 p.m. Salt Lake City (SLC) at 4 p.m.
Santa Barbara (SBA) at 4:45 p.m. Salt Lake City (SLC) at 7:40 p.m.

*First flight departing SBA is on Aug. 13, 2019

Salt Lake City-Santa Barbara service will be operated by Delta Connection carrier SkyWest on a 76-seat Embraer E-175 aircraft with 12 seats in First Class, 20 seats in Delta Comfort+ and 44 seats in the Main Cabin. All flights will offer free entertainment through Delta Studio, as well as free messaging, access to Wi-Fi, and complimentary snacks and beverages.

Delta offers more than 280 departures to more than 90 destinations from its Salt Lake City hub, linking Santa Barbara to dozens of West Coast, Mountain West, East Coast and international destinations with a single, easy connection. Salt Lake City is a fast growing hub for Delta with seats up nearly 30 percent since 2014. As Salt Lake City’s largest carrier, Delta has invested in and worked closely with the airport on a multi-billion dollar infrastructure project to build the airport of the future in SLC, with the first phase expected to open in 2020.

Top Copyright Photo (all others by SkyWest): Delta Connection-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N250SY (msn 17000610) SNA (Michael B. Ing). Image: 945472.

Delta Connection-SkyWest aircraft slide show:

SkyWest’s routes flown for Delta:

Delta’s Domestic Route Map:

Delta to fly New York LaGuardia – Key West nonstop flights

Delta Connection-Republic Airline (2nd) Embraer ERJ 170-200LR (ERJ 175) N201JQ (msn 17000235) DCA (Jay Selman). Image: 403808.

Delta Air Lines will add weekly Delta Connection service (operated by Republic Airline) between New York (LaGuardia) and Key West starting on March 9, 2019.

According to Airline Route the seasonal route will be operated with Embraer 170/175 aircraft.

Republic Airline, based in Indianapolis, Indiana, operates a fleet of nearly 190 Embraer 170/175 aircraft and offers scheduled passenger service with approximately 950 daily flights to 100 cities in 40 U.S. states, Canada, the Caribbean and Central America. The airline provides fixed-fee flights operated under its major airline partner brands of American Eagle, Delta Connection and United Express.

On November 16, 2018 Delta confirmed the new route with this announcement:

Delta will launch new seasonal Saturday service between New York’s LaGuardia Airport and Key West, boosting the carrier’s seasonal leisure offerings to destinations in Florida and the Caribbean.

The seasonal flights will be operated by Delta Connection carrier Republic Airline from March 9, 2019, through August 31, 2019, on Embraer E-170 aircraft with 9 seats in First Class, 12 in Delta Comfort+ and 48 in the Main Cabin.

The flights will operate on the following schedule and are now available for sale:

Departs Arrives
LGA at 9:00 a.m. EYW at 12:43 p.m.
EYW at 1:13 p.m. LGA at 4:24 p.m.

The Key West flight also joins new winter service to the Caribbean from New York-JFK to Kingston, Port-Au-Prince and Antigua, along with a second daily flight to Nassau. Saturday service between JFK and St. Maarten will increase to a daily frequency next month.

Delta also flies daily between Key West and Atlanta year-round.

Top Copyright Photo (all others by Republic): Delta Connection-Republic Airline (2nd) Embraer ERJ 170-200LR (ERJ 175) N201JQ (msn 17000235) DCA (Jay Selman). Image: 403808.

Route Map:

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SkyWest takes delivery of its first Embraer E175 SC (Special Configuration)

SkyWest Airlines has taken delivery of the pictured N262SY (msn 17000714), officially an Embraer ERJ 170-200 LL. The new type is marketed as the ERJ 175 SC (ERJ 170-200SC) (Special Configuration) with 70 seats. The aircraft arrived on March 11, 2018.

The airline announced the new arrival on social media:

SkyWest has taken delivery of our first E175 SC this past weekend! N262SY is part of the 45 aircraft order announced in the fall of 2017. The E175 SCs are configured in a 70-seat layout and will be operating as Delta Connection.

Photos: SkyWest Airlines.

Endeavor Air to add its first Bombardier CRJ700

Endeavor Air (Minneapolis/St. Paul) is planning to add its first Bombardier CRJ700 this quarter.

Previously the carrier announced in August 2017 the addition of 28 Bombardier CRJ900 aircraft, increasing the world’s largest fleet of the 76-seat aircraft to 109.

Endeavor will also acquire three Bombardier CRJ700 aircraft.

The airline also plans to draw down its 50-seat CRJ200 fleet by 16 aircraft, to 42 CRJ200s, for a total net gain of 15 aircraft once all aircraft have been inducted at Endeavor.

The three CRJ700s are coming from ExpressJet and will be operated for Delta.

Endeavor Air is a wholly-owned subsidiary of Delta Air Lines.

All photos by Endeavor Air.

Delta Connection-Endeavor aircraft slide show:

Delta to drop all service to Killeen-Fort Hood, Texas

Delta Connection-ExpressJet Airlines Bombardier CRJ900 (CL-600-2D24) N138EV (msn 15235) ATL (Jay Selman). Image: 403370.

Delta Air Lines is planning to drop Delta Connection service to Killeen/Fort Hood, TX on January 16, 2018. Delta connects the airport with the Atlanta hub, operated by ExpressJet Airlines.

Copyright Photo: Delta Connection-ExpressJet Airlines Bombardier CRJ900 (CL-600-2D24) N138EV (msn 15235) ATL (Jay Selman). Image: 403370.

Compass Airlines amends its CBA for First Officer first-year pilot pay

Delta Connection-Compass Airlines Embraer ERJ 170-200LR (ERJ 175) N638CZ (msn 17000259) LAX (Michael B. Ing). Image: 930227.

Compass Airlines (Minneapolis/St. Paul) (American Eagle and Delta Connection) has issued this statement about increasing the First Officer first-year pay in order to attract new pilots:
Compass logo-1Compass Airlines is pleased to announce that the Collective Bargaining Agreement (CBA) for its pilot group has been amended to increase first year, First Officer pay to $35.81 per flight hour. An additional highlight of the amended CBA is the provision of four paid hotel stays per month for commuting pilots. The amendment also gives Compass the flexibility to quickly raise first year pay in response to market conditions. The agreement was reached as part of a voluntary mediated settlement of a number of outstanding issues between Compass Airlines and its pilot group, represented by the Air Line Pilots Association (ALPA).

 

The amendments to the contract are effective immediately.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Compass Airlines Embraer ERJ 170-200LR (ERJ 175) N638CZ (msn 17000259) departs from Los Angeles International Airport (LAX).

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

AG Strict Screeners