SkyWest has reported a USD (26) million net loss, or USD (0.51) loss per share in the second quarter 2020, compared to net income of USD 88 million, or USD 1.71 per diluted share, for Q2 2019, the company said.
Revenue in the second quarter 2020 was USD 350 million, down from USD 744 million in Q2 2019, due to the COVID-19 pandemic that caused a significant reduction in the number of scheduled flights SkyWest operated under its flying contracts, compared to the same period last year.
SkyWest deferred recognizing revenue on USD 69 million of fixed monthly payments received during Q2 2020. Under GAAP, the fixed monthly payments are recognized as revenue ratably based on completed flights over the contract term. Due to the significantly lower than normal number of flights completed during Q2 2020, the amount of cash received exceeded the revenue recognized based on the number of flights completed during the quarter. SkyWest will recognize the deferred revenue based on completed flights over the remaining contract term.
Operating expenses were USD 354 million in Q2 2020, down from USD 600 million in Q2 2019 due to fewer flights operated compared to the same period last year, and USD 152 million in CARES Act payroll support.
SkyWest took delivery of 21 used E175 aircraft under a previously-announced agreement with United Airlines.
SkyWest took delivery of two new E175 aircraft and three used E175 aircraft under a previously-announced agreement with Delta Air Lines.
Aircraft deliveries are anticipated from Q4 2021 through mid-2022. SkyWest anticipates financing the aircraft through debt.
SkyWest had USD 762 million in cash and marketable securities at June 30, 2020, up from USD 578 million at March 31, 2020. Total debt at June 30, 2020 was USD 3.0 billion, up from USD 2.9 billion as of March 31, 2020.
SkyWest, Inc. is the holding company for SkyWest Airlines and SkyWest Leasing, an aircraft leasing company. SkyWest Airlines has a fleet of nearly 500 aircraft connecting passengers to over 250 destinations throughout North America. SkyWest Airlines operates through partnerships with United Airlines, Delta Air Lines, American Airlines and Alaska Airlines carrying more than 43 million passengers in 2019.