St. George, Utah-based SkyWest, Inc. (NASDAQ: SKYW) has reported financial and operating results for the first quarter of 2017, including net income of USD 35m, or USD 0.65 per diluted share, compared to net income of USD 27m, or USD 0.52 per diluted share for Q1 2016, the airline said.
The improvement in pre-tax income over Q1 2016 was primarily due to SkyWest´s continued fleet transition, including the addition of 45 new E175s, and the removal of 45 ERJ145s and 16 CRJ200s since Q1 2016. Additionally, since Q1 2016 SkyWest has transitioned 38 CRJ700s it previously operated under agreements with other major airline partners to American Airlines, Inc. under a multi-year agreement, further reducing fleet risk.
Revenue for Q1 2017 was USD 765m in Q1 2017, up from USD 762m in Q1 2016. The increase in revenue included the net impact of adding 45 new E175 aircraft since Q1 2016 (of which seven were delivered in Q1 2017), partially offset by the removal of unprofitable or less profitable aircraft over the same period, including 45 ERJ145s, 16 CRJ200s and eight CRJ700s.
Operating expenses were USD 689m in Q1 2017, down from USD 700m in Q1 2016. The decrease was primarily due to lower direct operating costs from 24 fewer aircraft in service and a 7% reduction in block hour production, partially offset by higher fuel costs and crew training costs associated with the new E175 aircraft deliveries.
SkyWest, Inc. is the holding company for two scheduled passenger airline operations and an aircraft leasing company. The company´s airline companies, SkyWest Airlines and ExpressJet Airlines, provide commercial air service in cities throughout North America with more than 2,800 scheduled daily flights carrying nearly 54 million passengers annually.