Tag Archives: EMB-120 Brasilia

SkyWest reports first quarter net income of $9.6 million, downsizes the fleet by 24 aircraft

SkyWest, Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George, Utah) reported net income of $9.6 million, reversing a previous net off of $22.9 million in the same quarter a year ago.

The company removed 15 Embraer EMB-120 Brasilias from service along with 29 50-seat aircraft previously operated for United Express. The represents a net reduction in the combined fleet of 24 aircraft. SkyWest will further reduced the fleet by another 60 aircraft by the end of this year. The company is eliminating unprofitable aircraft and contract routes.

Here is the full financial report:

SkyWest, Inc. reported financial and operating results for the quarter ended March 31, 2015.

SkyWest generated $9.6 million of net income, or $0.18 per diluted share, for Q1 2015. This represents an after-tax improvement of $32.5 million from Q1 2014, which had a net loss of $(22.9) million, or $(0.44) per diluted share.

Q1 2015 Financial Highlights

  •   Pre-tax income increased $59 million from Q1 2014 primarily due to improved operating performance, additional flying contracts and improved recovery from weather disruptions.
  •   SkyWest generated $100 million in EBITDA in Q1 2015, compared to $35 million in Q1 2014.
  •   Revenue included improvements of $21 million from higher flight completion rates and $33 million from the additional E175 operations, improved contract rates from renewals and extensions and improved contract performance incentives. These improvements provided a significant offset to the anticipated revenue decrease from a reduced fleet size and production.
  •   Operating expenses were down by $74 million compared to Q1 2014, primarily driven by improved operating efficiencies and a net decrease in production.

Q1 2015 Operational Update

  •   ExpressJet’s adjusted completion rate significantly improved to 99.6% in Q1 2015 from 98.0% in Q1 2014. SkyWest Airlines adjusted completion rate also improved to 99.3% in Q1 2015 from 99.0% in Q1 2014.
  •   ExpressJet reduced its number of total cancelled flights, including weather cancellations, to 7,300 flights, or 4.5% of scheduled flights, in Q1 2015, from approximately 20,400, or 10.6% of scheduled flights, in Q1 2014. Additionally, SkyWest Airlines reduced its number of total cancelled flights, including weather cancellations, to 3,500 flights, or 2.3% of scheduled flights, in Q1 2015, from 6,400 flights, or 4.1% of scheduled flights, in Q1 2014.

April 30, 2015

  •   SkyWest was named one of “America’s Best Employers 2015” by Forbes ®. SkyWest is the only regional airline company included on the 2015 list.
  •   The reduction in ExpressJet’s ERJ145 operations was the primary driver in SkyWest’s 6.4% reduction in departures and a 5.5% reduction in block hours compared to Q1 2014.
  •   Total aircraft in service went to 693 at March 31, 2015 from 717 December 31, 2014, summarized as follows:

o Added nine new E175 aircraft with United

o Added five used 50-seat aircraft with Delta and six used 50-seat aircraft with American

o Removed 15 EMB120 aircraft from service

o Removed 29 50-seat aircraft from service previously operated with United

 Under a previously announced agreement with Alaska Airlines, SkyWest Airlines is scheduled to take delivery of seven new E175 aircraft between Q2 2015 and the Q1 2016.

Commenting on the results, Chip Childs, SkyWest, Inc. President said, “Our first quarter results reflect strong progress on our long-term objectives to improve operating performance and reduce the number of aircraft operating in unprofitable flying contracts. During the quarter we continued execution of our fleet transition plan and we expect this transition to continue through 2016. First quarter’s positive results demonstrate solid execution of these long-term strategic objectives to improve profitability.”

Q1 2015 Capital and liquidity update

  •   SkyWest had $480 million in cash and marketable securities at March 31, 2015. Cash and marketable securities decreased $79 million during Q1 2015, primarily due to $46 million in scheduled semi-annual aircraft lease pre-payments and SkyWest’s investment of $36 million to acquire E175 aircraft and $10 million to acquire E175 spare parts and engines.
  •   Long-term debt increased $164 million from December 31, 2014 to March 31, 2015. The increase was primarily due to the issuance of $203 million of long-term debt for nine E175 aircraft delivered during Q1 2015, partially offset by principal payments made on total outstanding debt.

Copyright Photo: Mark Durbin/AirlinersGallery.com. SkyWest removed 15 Embraer EMB-120ER Brasilias from service during the quarter. Embaer EMB-120ER Brasilia N560SW (msn 120334) prepares to taxi from the gate at San Francisco International Airport (SFO).

SkyWest Airlines aircraft slide show (in-house liveries): AG Airline Slide Show

AG Up-close action photography

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Are nonstop New York LGA-California flights a possibility?

According to this report by Dan Reed of Forbes, the Post Authority of New York and New Jersey, which manages LaGuardia Airport (LGA) along with John F. Kennedy International Airport (JFK) and Newark Liberty International Airport (EWR), is considering lifting the perimeter rule at LGA that restricts nonstop flights over 1,500 miles.

Read the full report: CLICK HERE

Copyright Photo: Ken Petersen/AirlinersGallery.com. If the rule is lifted, the landing and takeoff slots at LGA will become more valuable. Airlines will likely move some JFK-West Coast flights to LGA. The loser in this possible rule change may be the small communities with their current flights to LGA with smaller aircraft. The number of 50-seat regional jets is likely to decrease with any rule change at LGA. Embraer ERJ 145LR (EMB-145LR) N278SK (msn 145370) climbs away from the runway at LGA.

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SkyWest Airlines to end Los Angeles-Carlsbad service on April 6

SkyWest Airlines (St. George, Utah) will United Express Embraer EMB-120 Brasilia service between the Los Angeles hub and Carlsbad/Oceanside, California on April 6, 2015. SkyWest is phasing out all of its Brasilias.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Embraer EMB-120ER Brasilia N568SW (msn 120343) arrives at Los Angeles International Airport.

United Express-SkyWest aircraft slide show:

SkyWest Airlines to remove all remaining Embraer EMB-120 Brasilias from service

SkyWest, Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George, Utah) has announced fleet transitions and contract updates designed to improve SkyWest’s overall efficiency and long-term profitability.

Specifically, SkyWest announced that SkyWest Airlines, Inc., its wholly-owned subsidiary, intends to transition to an all-jet fleet by removing all remaining 30-seat Embraer EMB-120 Brasilia turboprop aircraft from service by summer 2015. The EMB-120 fleet retirement comes, in part, in response to increased costs and additional challenges associated with new FAR117 flight and duty rules, implemented in January 2014.

Separately, SkyWest announced that ExpressJet Airlines, Inc., its wholly-owned subsidiary, has executed an agreement with United Airlines, Inc. to reduce the term of the existing 50-seat ERJ 145 contract between ExpressJet and United from November 2020 to December 2017, subject to certain extension rights by United. ExpressJet Airlines anticipates the reduction in the ERJ 145 operations will improve its overall operational reliability and financial results.

As a result of the decision to remove the EMB-120 aircraft from service by June 2015 and as a result of the reduced term to operate the ERJ 145 aircraft, SkyWest, Inc. anticipates recording pre-tax special charges (primarily non-cash) ranging from $55-70 million in the fourth quarter of 2014.

It is unclear how the grounding and retirement of the Brasilia fleet will affect air service to remote communities.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. SkyWest Airlines mainly operates its Brasilias under the United Express brand however 13 EMB-120s wear the SkyWest house livery (below). Embraer EMB-120ER brasilia N294SW (msn 120321) arrives in Los Angeles.

United Express-SkyWest Airlines aircraft slide show: AG Slide Show

SkyWest Airlines aircraft slide show: AG Slide Show

Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. Embraer EMB-120ER Brasilia N217SW (msn 120286) arrives in Las Vegas.

SkyWest Airlines to drop Chico, California on December 2

SkyWest Airlines (United Express) (St. George, UT) will drop Chico, California and the Chico-San Francisco route on December 2. The route is not profitable according to KRCR News. This will end commercial air service at the airport.

Read the full article: CLICK HERE

Copyright Photo: Mark Durbin/AirlinersGallery.com. Embraer EMB-120ER Brasilia N295SW (msn 120322) taxies at the San Francisco hub.

United Express-SkyWest Airlines: AG Slide Show

United to drop United Express service from Portland, Oregon to Eugene, Redmond and Seattle/Tacoma

United Airlines (Chicago) has decided to drop its United Express flights from Portland, Oregon to Eugene, Redmond and Seattle/Tacoma on September 1 according to Oregon Live. The flights are operated by SkyWest Airlines Embraer EMB-120ER Brasilias.

Read the full story from Oregon Live: CLICK HERE

In addition, United is dropping service to Doha, Qatar on August 30 as an extension of the daily Washington (Dulles)-Dubai route according to Airline Route.

Copyright Photo: Bruce Drum/AirlinersGallery.com. SkyWest Airlines EMB-120ER Brasilia N584SW (msn 120352) taxies across the ramp at Seattle-Tacoma International Airport (SEA).

United Airlines (current): AG Slide Show

United Express-SkyWest: AG Slide Show