Tag Archives: United Express-SkyWest Airlines

United to pull out of Paine Field on October 5

Delivered on November 8, 2019

United Airlines has announced it will suspend the Denver – Everett (Paine Field) route on October 5. This was the only United Express route operated to PAE. It previously operated a route from PAE to the San Francisco hub.

PAE United Express flights are operated for United Airlines by SkyWest Airlines.

Alaska Airlines continues to operate out of Paine Field.

Top Copyright Photo: United Express-SkyWest Airlines Embraer ERJ 170-200LL (ERJ 175) N620UX (msn 17000824) PAE (Nick Dean). Image: 953003.

United Express-SkyWest aircraft slide show:

SkyWest to receive $250 million through Payroll Support Program 3 under the American Rescue Plan Act of 2021

United Express-SkyWest Airlines Embraer ERJ 170-200LL (ERJ 175) N614UX (msn 17000815) PAE (Nick Dean). Image: 953190.

SkyWest, Inc. has announced that its wholly-owned subsidiary SkyWest Airlines has entered into a Payroll Support Program 3 Agreement with the U.S. Treasury Department to receive a total of approximately $250 million under the American Rescue Plan Act of 2021. SkyWest received half of the $250 million on April 23, 2021 and expects to receive the remaining funding 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 the U.S. Treasury Department (“Treasury”) warrants to purchase approximately 78,317 shares of SkyWest common stock at a strike price of $57.47.

The funds received under this Payroll Support Program will be used to pay for the wages, salaries and benefits of thousands of SkyWest Airlines employees.

This Program includes certain restrictions similar to the first two Payroll Support Programs, including limitations on involuntary terminations and furloughs through September 30, 2021, restrictions on the payment of dividends and the repurchase of shares through September 30, 2022, and certain limitations on executive compensation through April 1, 2023.

Additionally, SkyWest also announced it received an additional $35 million payroll support funding on April 23, 2021 from Treasury under the Payroll Support Program Extension agreement (“PSP 2”). In consideration for the additional funding under PSP 2, approximately $10 million will be in the form of a ten-year low interest unsecured term loan, and SkyWest will issue to Treasury warrants to purchase approximately 25,958 shares of SkyWest common stock at a strike price of $40.41.

Top Copyright Photo: United Express-SkyWest Airlines Embraer ERJ 170-200LL (ERJ 175) N614UX (msn 17000815) PAE (Nick Dean). Image: 953190.

United Express-SkyWest Airlines aircraft slide show:

United Express-SkyWest Airlines Route Map:

United to drop San Francisco – Paine Field service

United Express-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N152SY (msn 17000549) PAE (Nick Dean). Image: 948984.

United Airlines will drop United Express (SkyWest Airlines) service from its San Francisco hub to Everett, WA (Paine Field) on March 4, 2020.

The route is operating with three roundtrips daily with Embraer 175 aircraft.

United will continue to serve PAE from its Denver hub.

Top Copyright Photo: United Express-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N152SY (msn 17000549) PAE (Nick Dean). Image: 948984.

United Express-SkyWest aircraft slide show:

SkyWest, Inc. announces a first quarter 2019 profit

American Eagle Airlines (2nd)-SkyWest Airlines Bombardier CRJ700 (CL-600-2C10) N710SK (msn 10170) LAX (Michael B. Ing). Image: 946297.

SkyWest, Inc. today reported financial and operating results for Q1 2019, including net income of $88 million, or $1.69 per diluted share, compared to net income of $54 million, or $1.03 per diluted share, for Q1 2018. Adjusted net income in Q1 2019 was $69 million, up 27% from Q1 2018 primarily due to SkyWest’s ongoing fleet transition, as SkyWest has added 43 new aircraft since Q1 2018, and reduced aircraft ownership costs resulting from early lease buyouts executed in early 2019.

Commenting on the results, Chip Childs, Chief Executive Officer and President of SkyWest, said, “This quarter was significant for SkyWest as we move forward as one airline with a smaller, but more efficient footprint.  Our team performed well this quarter through a series of severe weather events.  We are encouraged with our progress and are working together with our 14,000 employees to deliver the best possible product to our partners.”

Financial Highlights
Revenue was $724 million in Q1 2019, down from $783 million in Q1 2018 due to the sale of ExpressJet Airlines (“ExpressJet”) in January 2019. Excluding ExpressJet revenue in both periods, revenue increased to $700 million in Q1 2019 from $622 million in Q1 2018 primarily from the impact of adding 35 new E175 and eight new CRJ900 aircraft since Q1 2018.

Operating expenses were $627 million in Q1 2019, down from $695 million in Q1 2018 due to the sale of ExpressJet. Excluding ExpressJet operating expenses in both periods, operating expenses increased to $599 million in Q1 2019 from $528 million in Q1 2018, primarily from the additional aircraft placed into service, higher labor costs and special item operating expenses in Q1 2019.

The adjusted results for the quarter exclude $24.7 million of pre-tax earnings comprised of the gain on the sale of ExpressJet of $46.6 million (pre-tax) and a $21.9 million (pre-tax) expense primarily due to a non-cash write-off of aircraft manufacturer part credits forfeited to settle future lease return obligations.

Operational Update
Flying contract extension
SkyWest announced today that it has agreed to a multi-year extension with American Airlines on 38 CRJ700 aircraft (top).  These aircraft previously had contract maturities scheduled to begin in late 2019.  SkyWest also expects to add two used CRJ700 aircraft to the American contract in Q2 2019 under a multi-year term.

Lease agreement with a third-party for 29 CRJ700 aircraft
SkyWest also announced today that it has agreed to lease 29 CRJ700 aircraft to a third-party for a ten-year term, subject to the finalization of their flying contract.  SkyWest anticipates the aircraft will be placed under lease in increments from mid-2019 to mid-2020.

Delivery schedule under previously announced agreements
E175 aircraft to be financed by SkyWest and operated for Delta Air Lines and Alaska Airlines:

  • Took delivery of one aircraft during Q1 2019 (Delta contract)
  • Scheduled to take delivery of four aircraft in Q2 2019 (Delta contract)
  • Scheduled to take delivery of four aircraft in mid-2020 (Delta contract)
  • Scheduled to take delivery of three aircraft in 2021 (Alaska contract)

SkyWest expects to remove a used CRJ900 aircraft from its contract with Delta as each of these ERJ175 aircraft is placed into service with Delta (total of nine CRJ900 expected removals).  As previously announced, SkyWest anticipates leasing five CRJ900s to a third party under a six-year term and returning four CRJ900s to a lessor following removal of service with Delta.

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

  • Took delivery of three aircraft during Q1 2019
  • Scheduled to take delivery of four aircraft in mid-2019
  • Scheduled to take delivery of eight aircraft 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.

Joint venture with Regional One
SkyWest entered into a joint venture with Regional One during Q1 2019.  The primary purpose of the joint venture is to lease spare engines to third parties.  SkyWest anticipates initiating transactions through the joint venture beginning in Q2 2019, including the transfer of 14 engines into the joint venture.

Previously announced transactions that closed in Q1 2019
In January 2019, SkyWest completed the previously announced sale of ExpressJet to ManaAir, LLC.  The transaction was completed in two parts, through an asset sale and stock sale, for an aggregate sales price of $77 million.  SkyWest loaned $26 million to ManaAir in conjunction with the closing.

SkyWest also completed the previously-announced early leveraged lease buyout on 16 CRJ700s and 36 CRJ200s.  SkyWest used $110 million in Q1 2019 to acquire these aircraft off lease.  SkyWest assumed no debt on these aircraft.

Capital and Liquidity
SkyWest had $544 million in cash and marketable securities at March 31, 2019, down from $689 million at December 31, 2018. During the first quarter of 2019, SkyWest:

  • Used $110 million to acquire 52 CRJ aircraft under an early lease buyout
  • Used $90 million to acquire 16 used CRJ700s previously operated and leased by a SkyWest entity. SkyWest anticipates leasing the majority of airframes and engines to third parties and using a portion of aircraft components as spare parts.
  • Received $51 million net cash from the sale of ExpressJet
  • Used $25 million to repurchase stock, of which $21 million was purchased under SkyWest’s $250 million share repurchase program approved during Q1 2019
  • Used $4 million toward the purchase of one E175 aircraft
  • Used $28 million for other capital investments, primarily related to spare engines, aircraft parts and maintenance assets

Total debt at March 31, 2019 was $3.1 billion, down from $3.2 billion as of December 31, 2018.   Q1 2019 ending debt balance included debt issued for one E175 aircraft acquired during the quarter, offset by principal payments.

Top Copyright Photo (all others by the airline): American Eagle Airlines (2nd)-SkyWest Airlines Bombardier CRJ700 (CL-600-2C10) N710SK (msn 10170) LAX (Michael B. Ing). Image: 946297.

American Eagle-SkyWest aircraft slide show:

Alaska SkyWest route map:

American Eagle route map:

Delta Connection route map:

United Express route map:

Propeller Airports welcomes United Airlines back to Paine Field

First arrival at Paine Field, Everett, WA

Propeller Airports issued this statement:

Paine Field’s Passenger Terminal added to its commercial flight offerings on March 31 as United Airlines’ first passenger flight arrived from Denver and its first departure left for San Francisco. United’s launch comes just one month after Alaska Airlines inaugurated commercial service at the terminal, owned and operated by Propeller Airports under an innovative Public Private Partnership with Snohomish County.

Photos: Paine Field.

The new service will provide additional flexibility and options for Seattle-area travelers, with United offering four daily nonstops to San Francisco and two daily nonstops to Denver. This launch represents a homecoming for United – the first airline to operate a commercial flight from Paine Field when the airport opened nearly 80 years ago.

Sunday is also an opportunity for Propeller to celebrate its first month operating the new passenger terminal, on which the company finished construction in late 2018. Paine Field has seen strong passenger demand from day one and expects that to continue with the introduction of United’s service. From Paine Field, travelers are able to reach every major west coast city with easy connections to anywhere in the world.

To mark this special occasion, aviation legend Clay Lacy joined United Managing Director of West Coast Sales Marie Downey and Propeller CEO Brett Smith to cut the ribbon for United’s first departure to San Francisco. Clay Lacy began flying at the age of 12 and joined United in 1952 where he flew nine aircraft types including the DC-3, Boeing’s 727 and the iconic 747. Clay holds 29 world speed records, including a 36-hour, 54-minute, 15-second around-the-world record in 1988 flying a Boeing 747 that raised money for children’s charities. He has flown more than 300 aircraft types, logged more than 50,000 flight hours and has accumulated more miles flying jet aircraft than anyone on Earth. Clay retired from United with seniority No. 1 in 1992 after more than 41 years of incident-free flying.

“We are excited to offer our Seattle and Northwest Washington area customers with four daily flights to San Franciscoand two daily flights to Denver,” said United’s Managing Director of West Coast Sales, Marie Downey. “This new service from Paine Field will give our customers in Northern Seattle, Snohomish and Northern King County areas access to hundreds of destinations while making their travel experience more convenient.”

United’s entry to Paine Field is the latest in a wide array of partners to ramp up operations at the airport this month, including Uber, Lyft, Avis Rent A Car, Enterprise Holdings, and Beecher’s Cheese. Beecher’s, the exclusive concessions vendor, will be opening a full-service restaurant in the terminal later this year.

The new service is operated by SkyWest Airlines for United Airlines.

Top Copyright Photo: The first UA arrival at PAE. United Express-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N103SY (msn 17000390) PAE (Nick Dean). Image: 946133.

United Express-SkyWest aircraft slide show:

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Embraer and SkyWest, Inc. sign contract for nine E175 jets

Embraer and SkyWest, Inc. have signed a firm order for nine E175 jets, with deliveries expected to begin in 2019. The order has a value of $422 million, based on current list prices, and was already included in Embraer’s 2018 fourth-quarter backlog. SkyWest Airlines will operate all nine E175s, featuring a 76-seat configuration.

“Since 2013, SkyWest has purchased a total of 158 E175s, including these nine, in order to expand their large existing fleet of Embraer aircraft,” said Charlie Hillis, Vice President, Sales & Marketing, North America, Embraer Commercial Aviation. “We are extremely proud of their ongoing support for the E-Jets program and the fact that the E175 continues to outperform in North America. Without a doubt, the E175 has become the backbone of the regional aviation market in the U.S.”

Including this new contract, Embraer has sold more than 565 E175s to airlines in North America, since January 2013, earning more than 80% of all orders in this 70-76-seat jet segment.

SkyWest, Inc. is a premier regional airline company and the holding company of SkyWest Airlines. SkyWest holds a long history with Embraer as early customers for the Embraer EMB 120 Brasilia turboprop aircraft.

Since entering revenue service, the E-Jets family has received more than 1,800 orders and over 1,500 aircraft have been delivered. Today, E-Jets are flying in the fleet of 70 customers in 50 countries. The versatile 70 to 150-seat family is flying with low-cost airlines as well as with regional and mainline carriers.

Alaska SkyWest (SkyWest Airlines) Embraer ERJ 170-200LR (ERJ 175) N403SY (msn 17000738) LAX (Michael B. Ing). Image: 945520.

Above Copyright Photo: Alaska SkyWest (SkyWest Airlines) Embraer ERJ 170-200LR (ERJ 175) N403SY (msn 17000738) LAX (Michael B. Ing). Image: 945520.

Below Copyright Photo: Delta Connection-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N244SY (msn 17000588) SNA (Michael B. Ing). Image: 945470.

Delta Connection-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N244SY (msn 17000588) SNA (Michael B. Ing). Image: 945470.

Bottom Copyright Photo: United Express-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N151SY (msn 17000503) LAX (Michael B. Ing). Image: 945522.

United Express-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N151SY (msn 17000503) LAX (Michael B. Ing). Image: 945522.

United Airlines announces new daily service between Paine Field and Denver and San Francisco

United Express-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N139SY (msn 17000468) LAX (Ron Monroe). Image: 944561.

United Airlines today announced it will begin nonstop service between Paine Field/Snohomish County Airport and its hubs in Denver and San Francisco. Subject to government approval, United will operate two daily flights from Denver and four daily flights from San Francisco, beginning March 31, 2019.

United service to Paine Field/Snohomish County Airport

Flight #

Depart

Time

Arrive

Time

Aircraft

5460

Denver

9:25 a.m.

Paine Field

11:30 a.m.

E175

5528

Denver

7:15 p.m.

Paine Field

9:22 p.m.

E175

5871

San Francisco

11:00 a.m.

Paine Field

1:24 p.m.

E175

5880

San Francisco

12:45 p.m.

Paine Field

2:07 p.m.

E175

5898

San Francisco

4:15 p.m.

Paine Field

6:39 p.m.

E175

5883

San Francisco

9:30 p.m.

Paine Field

11:54 p.m.

E175

United operates up to 40 daily flights between Seattle-Tacoma International Airport and its U.S. hubs. North Seattle and Northwest Washington are among the fastest growing areas in the nation and United’s new service connects Paine Field to two of the airline’s largest hubs offering customers more opportunities to easily connect to hundreds of domestic destinations including California’s Central Coast, Colorado, Hawaii and New York City. United’s new service also offers customers more opportunities to conveniently connect to popular international destinations including Sydney, London, and Mexico City.

Top Copyright Photo: United Express-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N139SY (msn 17000468) LAX (Ron Monroe). Image: 944561.

United Express-SkyWest aircraft slide show:

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United to offer Redding, CA service

United Express-SkyWest Airlines Bombardier CRJ200 (CL-600-2B19) N923SW (msn 7664) LAX (Michael B. Ing). Image: 936854.

United Airlines is planning to offer daily United Express service connecting the Los Angeles hub with Redding, CA starting on March 8, 2019. According to Airline Route, the route will be operated with SkyWest Airlines CRJ200s.

Top Copyright Photo (all others by SkyWest): United Express-SkyWest Airlines Bombardier CRJ200 (CL-600-2B19) N923SW (msn 7664) LAX (Michael B. Ing). Image: 936854.

United Express-SkyWest aircraft slide show:

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United to fly the Chicago O’Hare – Leon/Guanajuato route

United Express-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N105SY (msn 17000395) SNA (Michael B. Ing). Image: 943213.

United Airlines for the winter season will operate a daily United Express route from the Chicago (O’Hare) hub to Leon/Guanajuato, Mexico.

According to Airline Route, the route will be operated by SlyWest Airlines Embraer 175s starting on October 28, 2018.

 

In other news, United Airlines will end daily service to Victoria, British Columbia from the San Francisco hub on January 6, 2019. The route is operated by SkyWest Airlines CRJ200 aircraft.

Top Copyright Photo (all others by SkyWest): United Express-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N105SY (msn 17000395) SNA (Michael B. Ing). Image: 943213.

United Express-SkyWest aircraft slide show:

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United to add three United Express routes

United Express-SkyWest Airlines Bombardier CRJ200 (CL-600-2B19) N905SW (msn 7437) LAX (Michael B. Ing). Image: 941705.

United Airlines is planning to add three domestic United Express routes in early 2019 according to Airline Route:

Denver – Flagstaff daily effective March 31, 2019 operated by Trans States Airlines (ERJ 145)

Denver – Santa Rosa daily effective March 8, 2019 operated by SkyWest Airlines (CRJ200)

Paducah – Cape Girardeau daily effective January 7, 2019 operated by SkyWest Airlines (CRJ200)

Top Copyright Photo: United Express-SkyWest Airlines Bombardier CRJ200 (CL-600-2B19) N905SW (msn 7437) LAX (Michael B. Ing). Image: 941705.

United Express-SkyWest aircraft slide show:

United Express-SkyWest Route Map:

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