SkyWest reports Q2 2018 net income of USD 76m

SkyWest, Inc. (NASDAQ: SKYW) has reported second quarter 2018 net income of USD 76 million, or USD 1.43 per diluted share, compared to net income of USD 50 million, or USD 0.95 per diluted share for Q2 2017, the company said.

Second quarter 2018 pre-tax income was USD 98 million, an increase of 21% from the second quarter 2017, primarily due to SkyWest´s ongoing fleet transition. Since the second quarter 2017, SkyWest added 23 new E175 aircraft and removed 34 CRJ700/CRJ900 aircraft and 32 CRJ200/ERJ145 aircraft.

SkyWest Airlines, Inc. reached an agreement with Delta Air Lines to operate 20 new Bombardier CRJ900 aircraft under a nine-year flying contract. The aircraft will be acquired by Delta under a previously announced agreement with Bombardier and operated by SkyWest Airlines. SkyWest Airlines anticipates placing the 20 CRJ900s into service beginning late 2018 through 2020. These aircraft will have the ATMOSPHÈRE cabin with a 70-seat, dual-class configuration and will replace 20 CRJ700s scheduled to expire under SkyWest´s flying contracts with Delta.

SkyWest Airlines reached an agreement with American Airlines to place 20 used CRJ700s under a four-year contract. The 20 CRJ700s are expected to be sourced from within SkyWest´s fleet. The first aircraft in this agreement was placed into service in June 2018 and all 20 aircraft are scheduled to be in service by early 2019.

SkyWest Airlines reached an agreement with United Airlines to extend their existing flying contract on 19 CRJ700s operated by SkyWest Airlines. These aircraft previously had contract expirations scheduled for mid-2019/2020 and were extended for three years.

ExpressJet Airlines, Inc. reached an agreement with United to a three-year contract for 20 used CRJ200s. The 20 CRJ200s are expected to be sourced from within SkyWest´s fleet through contract expirations with other partners scheduled for the second half of 2018. The 20 CRJ200s are expected to be placed into service with United between the latter part of 2018 and early 2019.

Revenue for Skywest was USD 806 million in second quarter 2018, up from USD 792 million in the second quarter of 2017. The increase in revenue included the net impact of adding 23 new E175 aircraft and other economic improvements within SkyWest´s fleet mix since Q2 2017, partially offset by the removal of unprofitable or less-profitable aircraft over the same period.

Operating expenses were USD 679 million in the second quarter 2018, down from USD 685 million in the second quarter 2017. The decrease in operating expenses was primarily due to the reduction in direct operating costs with the net removal of 43 aircraft from service.

SkyWest Airlines took delivery of 14 new E175/E175 SC aircraft during Q2 2018.

Based in St. George, Utah, SkyWest, Inc. is the holding company for two scheduled passenger airline operations and an aircraft leasing company with more than 17,000 employees. SkyWest´s airline companies provide commercial air service in cities throughout North America with nearly 3,000 daily flights carrying approximately 50 million passengers annually. SkyWest´s airline companies operate through partnerships with United Airlines, Delta Air Lines, American Airlines and Alaska Airlines.