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SkyWest Inc. (NASDAQ: SKYW) reported strong financial results for Q2 2024, with net income of $76 million, or $1.82 per diluted share, compared to $15 million in Q2 2023. Revenue increased by 19% to $867 million, driven by a 12% increase in block hour production. The company took delivery of eight E175 partner-financed aircraft under an agreement with United Airlines. SkyWest's cash position remained stable at $834 million, while total debt decreased to $2.8 billion. The company repurchased 177,000 shares for $13.3 million during Q2 2024. SkyWest is set to operate a total of 278 E175 aircraft by the end of 2026, with additional deliveries scheduled for Delta Air Lines and Alaska Airlines.
SkyWest Inc. (NASDAQ: SKYW) ha riportato risultati finanziari solidi per il secondo trimestre del 2024, con un utile netto di 76 milioni di dollari, ovvero 1,82 dollari per azione diluita, rispetto ai 15 milioni di dollari nel secondo trimestre del 2023. I ricavi sono aumentati del 19% a 867 milioni di dollari, grazie a un incremento del 12% nella produzione di ore di volo. L'azienda ha ricevuto otto aeromobili E175 finanziati da partner in base a un accordo con United Airlines. La posizione di cassa di SkyWest è rimasta stabile a 834 milioni di dollari, mentre il debito totale è sceso a 2,8 miliardi di dollari. L'azienda ha riacquistato 177.000 azioni per 13,3 milioni di dollari durante il secondo trimestre del 2024. SkyWest prevede di operare un totale di 278 aeromobili E175 entro la fine del 2026, con ulteriori consegne programmate per Delta Air Lines e Alaska Airlines.
SkyWest Inc. (NASDAQ: SKYW) informó resultados financieros sólidos para el segundo trimestre de 2024, con un ingreso neto de 76 millones de dólares, o 1,82 dólares por acción diluida, en comparación con 15 millones de dólares en el segundo trimestre de 2023. Los ingresos aumentaron un 19% a 867 millones de dólares, impulsados por un incremento del 12% en la producción de horas de vuelo. La empresa recibió ocho aviones E175 financiados por socios bajo un acuerdo con United Airlines. La posición de efectivo de SkyWest se mantuvo estable en 834 millones de dólares, mientras que la deuda total disminuyó a 2,8 mil millones de dólares. La empresa recompró 177,000 acciones por 13.3 millones de dólares durante el segundo trimestre de 2024. SkyWest tiene previsto operar un total de 278 aviones E175 para finales de 2026, con entregas adicionales programadas para Delta Air Lines y Alaska Airlines.
SkyWest Inc. (NASDAQ: SKYW)는 2024년 2분기 강력한 재무 결과를 보고하며, 순이익 7,600만 달러, 즉 희석주당 1.82 달러를 기록했으며, 이는 2023년 2분기 1,500만 달러와 비교됩니다. 수익은 블록 시간 생산이 12% 증가함에 따라 19% 증가하여 8억 6,700만 달러에 달했습니다. 이 회사는 United Airlines와의 계약에 따라 8대의 E175 파트너 자금 항공기를 인도받았습니다. SkyWest의 현금 보유액은 8억 3,400만 달러로 안정적으로 유지되었고, 총 부채는 28억 달러로 감소했습니다. 이 회사는 2024년 2분기 동안 1만 7,7000주의 주식을 1,330만 달러에 재매입했습니다. SkyWest는 2026년 말까지 총 278대의 E175 항공기를 운영할 예정이며, Delta Air Lines와 Alaska Airlines를 위한 추가 인도가 예정되어 있습니다.
SkyWest Inc. (NASDAQ: SKYW) a annoncé de solides résultats financiers pour le deuxième trimestre de 2024, avec un résultat net de 76 millions de dollars, soit 1,82 dollar par action diluée, contre 15 millions de dollars au deuxième trimestre de 2023. Le chiffre d'affaires a augmenté de 19 % pour atteindre 867 millions de dollars, soutenu par une augmentation de 12 % de la production d'heures de vol. L'entreprise a reçu huit avions E175 financés par des partenaires dans le cadre d'un accord avec United Airlines. La position de liquidité de SkyWest est restée stable à 834 millions de dollars, tandis que la dette totale a diminué à 2,8 milliards de dollars. L'entreprise a racheté 177 000 actions pour 13,3 millions de dollars au cours du deuxième trimestre de 2024. SkyWest prévoit d'exploiter un total de 278 avions E175 d'ici fin 2026, avec des livraisons supplémentaires prévues pour Delta Air Lines et Alaska Airlines.
SkyWest Inc. (NASDAQ: SKYW) berichtete über starke finanzielle Ergebnisse für das 2. Quartal 2024, mit einem Nettoeinkommen von 76 Millionen US-Dollar, oder 1,82 US-Dollar pro verwässerter Aktie, verglichen mit 15 Millionen US-Dollar im 2. Quartal 2023. Der Umsatz stieg um 19 % auf 867 Millionen US-Dollar, bedingt durch einen Anstieg der Blockstundenproduktion um 12 %. Das Unternehmen nahm acht E175-Partner-Finanzierungsflugzeuge im Rahmen einer Vereinbarung mit United Airlines in Empfang. Die Liquiditätsposition von SkyWest blieb stabil bei 834 Millionen US-Dollar, während die Gesamtverschuldung auf 2,8 Milliarden US-Dollar sank. Das Unternehmen hat im 2. Quartal 2024 177.000 Aktien für 13,3 Millionen US-Dollar zurückgekauft. SkyWest plant, bis Ende 2026 insgesamt 278 E175-Flugzeuge zu betreiben, mit weiteren Lieferungen, die für Delta Air Lines und Alaska Airlines geplant sind.
Positive
- Net income increased significantly from $15 million in Q2 2023 to $76 million in Q2 2024
- Revenue grew by 19% year-over-year to $867 million
- Block hour production increased by 12% compared to Q2 2023
- Total debt decreased from $3.0 billion to $2.8 billion
- SkyWest repurchased 177,000 shares for $13.3 million, enhancing shareholder value
Negative
- Operating expenses increased by 8% to $747 million due to higher block hour production
- Cash and marketable securities slightly decreased from $835 million to $834 million
SkyWest's Q2 2024 results demonstrate a significant improvement in financial performance compared to the same period last year. The company reported
Revenue increased by
Operating expenses rose by
The balance sheet remains strong with
Looking ahead, SkyWest's planned expansion of its E175 fleet to 278 aircraft by 2026 positions the company for continued growth, particularly in serving small and underserved markets. This strategy aligns well with the ongoing recovery and evolution of the regional airline sector.
SkyWest's Q2 2024 performance highlights a robust recovery in the regional airline sector. The
The delivery of eight E175 aircraft (out of a planned 20) to United Airlines is a significant development. The E175 is a popular choice for regional routes due to its efficiency and passenger comfort. This fleet expansion aligns with the industry trend of upgauging regional fleets to larger, more efficient aircraft.
SkyWest's strategy to organically rebuild captain availability is crucial. The pilot shortage has been a major constraint for regional airlines and SkyWest's progress in this area could provide a competitive advantage. This improvement in staffing levels opens up opportunities for growth in small and underserved markets, a traditional stronghold for regional carriers.
The planned expansion to 278 E175 aircraft by 2026 is ambitious but well-timed. As major carriers continue to focus on larger aircraft for their mainline operations, there's an increasing reliance on regional partners like SkyWest to serve smaller markets and provide feed to hubs. This fleet strategy positions SkyWest to capitalize on this trend and potentially gain market share.
However, it's important to note the potential risks. The regional airline industry is highly dependent on contracts with major carriers and any shifts in these relationships could impact SkyWest's future performance. Additionally, while pilot availability has improved, ongoing industry-wide challenges in this area could still pose risks to growth plans.
Second Quarter 2024 Summary
- Q2 2024 pre-tax income of
, net income of$102 million , or$76 million per diluted share$1.82 - SkyWest took delivery of eight of the 20 E175 partner-financed aircraft under a previously announced agreement with United Airlines
- Block hour production increased
12% in Q2 2024 compared to Q2 2023
Commenting on the results, Chip Childs, Chief Executive Officer of SkyWest, said, “We are pleased with our continuing progress towards organically rebuilding our levels of captain availability. This opens the door to pursue and monetize the multiple pathways available to us to recapture and regrow small and underserved markets over the coming years. I want to thank our people for their solid operational execution.”
Financial Results
Revenue was
For purposes of revenue comparability year-over-year, SkyWest recognized
Operating expenses were
Capital and Liquidity
SkyWest had
Total debt at June 30, 2024 was
Under its previously announced share repurchase program authorized by the SkyWest Board of Directors in May 2023, SkyWest repurchased 177,000 shares of common stock for
Commercial Agreements
SkyWest is coordinating with its major airline partners to optimize the timing of upcoming announced fleet deliveries. The table below summarizes E175 aircraft deliveries SkyWest received during the first half of 2024 and anticipated future deliveries during the periods indicated based on currently available information, which is subject to change.
Q1 & Q2 2024 | Q3 & Q4 2024 | 2025 | 2026 | Total | |||||
Delta Air Lines | ꟷ | 1 | ꟷ | ꟷ | 1 | ||||
United Airlines(1) | 11 | 13 | 7 | 8 | 39 | ||||
Alaska Airlines | ꟷ | ꟷ | 1 | ꟷ | 1 | ||||
Total | 11 | 14 | 8 | 8 | 41 | ||||
(1) Includes 11 partner-financed E175s delivered in the first half of 2024 and 9 partner-financed deliveries expected in the second half of 2024. |
By the end of 2026, SkyWest is scheduled to operate a total of 278 E175 aircraft.
About SkyWest
SkyWest, Inc. is the holding company for SkyWest Airlines, SkyWest Charter (“SWC”) and SkyWest Leasing, an aircraft leasing company. SkyWest Airlines has a fleet of approximately 500 aircraft connecting passengers to over 240 destinations throughout
SkyWest will host its conference call to discuss its second quarter 2024 results today, July 25, 2024, at 2:30 p.m. Mountain Time. The conference call number is 1-888-330-2455 for domestic callers, and 1-240-789-2717 for international callers. Please call up to ten minutes in advance to ensure you are connected prior to the start of the call. The conference call will also be available live on the Internet at https://events.q4inc.com/attendee/662090633. This press release and additional information regarding SkyWest, including access information for the digital rebroadcast of the second quarter 2024 results call, participation at investor conferences and investor presentations can be accessed at inc.skywest.com.
Forward Looking-Statements
In addition to historical information, this release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "forecasts," "expects," "intends," "believes," "anticipates," "estimates," "should," "likely" and similar expressions identify forward-looking statements. Such statements include, but are not limited to, statements about the continued demand for our product, the effect of economic conditions on SkyWest’s business, financial condition and results of operations, the scheduled aircraft deliveries and fleet size for SkyWest in upcoming periods and the related execution of SkyWest’s fleet transition strategy and expected timing thereof, expected production levels in future periods and associated staffing challenges, pilot attrition trends, SkyWest’s coordination with major airline partners to optimize the delivery of aircraft under previously announced agreements, the expected terms, timing and benefits related to SkyWest’s leasing and joint venture transactions, as well as SkyWest’s future financial and operating results, plans, objectives, expectations, estimates, intentions and outlook, and other statements that are not historical facts. All forward-looking statements included in this release are made as of the date hereof and are based on information available to SkyWest as of such date. SkyWest assumes no obligation to update any forward-looking statements unless required by law. Readers should note that many factors could affect the future operating and financial results of SkyWest and could cause actual results to vary materially from those expressed in forward-looking statements set forth in this release. These factors include, but are not limited to: the challenges of competing successfully in a highly competitive and rapidly changing industry; developments associated with fluctuations in the economy and the demand for air travel, including related to inflationary pressures, and related decreases in customer demand and spending; uncertainty regarding continued recovery from the COVID-19 pandemic and other potential future outbreaks of infectious diseases or other health concerns, and the consequences of such outbreaks to the travel industry, including travel demand and travel behavior, and our major airline partners in general and the financial condition and operating results of SkyWest in particular; the prospects of entering into agreements with existing or other carriers to fly new aircraft; ongoing negotiations between SkyWest and its major airline partners regarding their contractual obligations; uncertainties regarding operation of new aircraft; the ability to attract and retain qualified pilots, including captains, and related staffing challenges; the impact of regulatory issues such as pilot rest rules and qualification requirements; the ability to obtain aircraft financing; the financial stability of SkyWest’s major airline partners and any potential impact of their financial condition on the operations of SkyWest; fluctuations in flight schedules, which are determined by the major airline partners for whom SkyWest conducts flight operations; variations in market and economic conditions; significant aircraft lease and debt commitments; estimated useful life of long-lived assets, residual aircraft values and related impairment charges; labor relations and costs and labor shortages; the impact of global instability; rapidly fluctuating fuel costs and potential fuel shortages; the impact of weather-related, natural disasters and other air safety incidents on air travel and airline costs; aircraft deliveries; uncertainty regarding ongoing hostility between
SkyWest, Inc. and Subsidiaries | |||||||||||||||
Condensed Consolidated Statements of Income (Loss) | |||||||||||||||
(Dollars and Shares in Thousands, Except per Share Amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
OPERATING REVENUES: | |||||||||||||||
Flying agreements | $ | 838,170 | $ | 700,394 | $ | 1,616,459 | $ | 1,364,232 | |||||||
Lease, airport services and other | 28,948 | 25,249 | 54,273 | 53,242 | |||||||||||
Total operating revenues | 867,118 | 725,643 | 1,670,732 | 1,417,474 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Salaries, wages and benefits | 355,005 | 322,441 | 706,004 | 657,642 | |||||||||||
Aircraft maintenance, materials and repairs | 183,267 | 162,491 | 328,682 | 304,717 | |||||||||||
Depreciation and amortization | 96,814 | 97,169 | 192,684 | 191,318 | |||||||||||
Aircraft fuel | 21,328 | 18,279 | 42,492 | 39,243 | |||||||||||
Airport-related expenses | 17,535 | 16,955 | 38,423 | 35,250 | |||||||||||
Aircraft rentals | 1,310 | 2,428 | 2,586 | 21,956 | |||||||||||
Other operating expenses | 72,219 | 74,020 | 140,715 | 140,192 | |||||||||||
Total operating expenses | 747,478 | 693,783 | 1,451,586 | 1,390,318 | |||||||||||
OPERATING INCOME | 119,640 | 31,860 | 219,146 | 27,156 | |||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Interest income | 12,040 | 10,494 | 23,666 | 20,527 | |||||||||||
Interest expense | (28,966 | ) | (33,718 | ) | (58,795 | ) | (67,338 | ) | |||||||
Other income (loss), net | (548 | ) | 9,001 | (1,676 | ) | 11,175 | |||||||||
Total other expense, net | (17,474 | ) | (14,223 | ) | (36,805 | ) | (35,636 | ) | |||||||
INCOME (LOSS) BEFORE INCOME TAXES | 102,166 | 17,637 | 182,341 | (8,480 | ) | ||||||||||
PROVISION (BENEFIT) FOR INCOME TAXES | 26,588 | 2,218 | 46,465 | (1,828 | ) | ||||||||||
NET INCOME (LOSS) | $ | 75,578 | $ | 15,419 | $ | 135,876 | $ | (6,652 | ) | ||||||
BASIC EARNINGS (LOSS) PER SHARE | $ | 1.88 | $ | 0.35 | $ | 3.38 | $ | (0.14 | ) | ||||||
DILUTED EARNINGS (LOSS) PER SHARE | $ | 1.82 | $ | 0.35 | $ | 3.28 | $ | (0.14 | ) | ||||||
Weighted average common shares: | |||||||||||||||
Basic | 40,179 | 43,837 | 40,239 | 46,614 | |||||||||||
Diluted | 41,431 | 44,219 | 41,462 | 46,614 |
SkyWest, Inc. and Subsidiaries | |||||
Summary of Consolidated Balance Sheets | |||||
(Dollars in Thousands) | |||||
(Unaudited) | |||||
June 30, | December 31, | ||||
2024 | 2023 | ||||
Cash and marketable securities | $ | 834,269 | $ | 835,223 | |
Other current assets | 280,887 | 296,673 | |||
Total current assets | 1,115,156 | 1,131,896 | |||
Property and equipment, net | 5,357,468 | 5,405,685 | |||
Deposits on aircraft | 77,282 | 77,282 | |||
Other long-term assets | 412,533 | 411,430 | |||
Total assets | $ | 6,962,439 | $ | 7,026,293 | |
Current portion, long-term debt | $ | 497,744 | $ | 443,869 | |
Other current liabilities | 826,184 | 810,423 | |||
Total current liabilities | 1,323,928 | 1,254,292 | |||
Long-term debt, net of current maturities | 2,284,375 | 2,562,183 | |||
Other long-term liabilities | 1,122,956 | 1,096,316 | |||
Stockholders' equity | 2,231,180 | 2,113,502 | |||
Total liabilities and stockholders' equity | $ | 6,962,439 | $ | 7,026,293 |
SkyWest, Inc. and Subsidiaries | |||||
Additional Operational Information (unaudited) | |||||
SkyWest’s fleet in scheduled service or under contract by aircraft type: | |||||
June 30, 2024 | December 31, 2023 | June 30, 2023 | |||
E175 aircraft | 248 | 237 | 235 | ||
CRJ900 aircraft | 41 | 41 | 41 | ||
CRJ700 aircraft | 99 | 118 | 110 | ||
CRJ200 aircraft | 87 | 89 | 106 | ||
Total aircraft in service or under contract | 475 | 485 | 492 |
As of June 30, 2024, SkyWest leased 35 CRJ700s and five CRJ900s to third parties and had 16 CRJ200s that are ready for service under SWC operations (these aircraft are excluded from the table above).
Selected operational data: | |||||||||||||||||||
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||
Block hours by aircraft type: | 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||
E175s | 195,207 | 168,416 | 15.9 | % | 374,192 | 329,167 | 13.7 | % | |||||||||||
CRJ900s | 20,823 | 19,698 | 5.7 | % | 38,215 | 40,411 | (5.4 | ) | % | ||||||||||
CRJ700s | 58,311 | 50,094 | 16.4 | % | 116,596 | 102,122 | 14.2 | % | |||||||||||
CRJ200s | 43,121 | 44,409 | (2.9 | ) | % | 78,260 | 87,159 | (10.2 | ) | % | |||||||||
Total block hours | 317,462 | 282,617 | 12.3 | % | 607,263 | 558,859 | 8.7 | % | |||||||||||
Departures | 189,325 | 173,837 | 8.9 | % | 358,757 | 334,460 | 7.3 | % | |||||||||||
Passengers carried | 10,691,017 | 9,887,779 | 8.1 | % | 19,840,470 | 18,463,649 | 7.5 | % | |||||||||||
Adjusted flight completion | 99.9 | % | 99.9 | % | — | pts | 99.9 | % | 99.9 | % | — | pts | |||||||
Raw flight completion | 99.0 | % | 98.9 | % | 0.1 | pts | 98.4 | % | 98.2 | % | 0.2 | pts | |||||||
Passenger load factor | 84.4 | % | 85.5 | % | (1.1 | ) | pts | 82.7 | % | 83.0 | % | (0.3 | ) | pts | |||||
Average trip length | 460 | 451 | 2.0 | % | 461 | 461 | — | % |
Adjusted flight completion percent excludes weather cancellations. Raw flight completion includes weather cancellations.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725220475/en/
Investor Relations
435.634.3200
Investor.relations@skywest.com
Corporate Communications
435.634.3553
corporate.communications@skywest.com
Source: SkyWest, Inc.
FAQ
What was SkyWest's (SKYW) earnings per share in Q2 2024?
SkyWest (SKYW) reported earnings of $1.82 per diluted share in Q2 2024.
How many E175 aircraft did SkyWest (SKYW) receive in Q2 2024?
SkyWest (SKYW) took delivery of eight E175 partner-financed aircraft under an agreement with United Airlines in Q2 2024.
What was SkyWest's (SKYW) revenue in Q2 2024?
SkyWest (SKYW) reported revenue of $867 million in Q2 2024, a 19% increase from Q2 2023.
How many E175 aircraft is SkyWest (SKYW) scheduled to operate by the end of 2026?
SkyWest (SKYW) is scheduled to operate a total of 278 E175 aircraft by the end of 2026.