* Pre-tax income of
* Took delivery of six E175 aircraft for
* under previously announced agreements
* Celebrated the 50-year anniversary of SkyWest's founding
Commenting on the results,
Financial Results
Revenue was
This quarter's increase in revenue under SkyWest's flying contracts came from adding 43 aircraft to its operations since Q2 2021, with the remaining revenue increase largely due to COVID-19 revenue concessions given to our major airline partners in Q2 2021.
Operating expenses were
Capital and Liquidity
SkyWest had
Total debt at
Status Update on Previously Announced Agreements
SkyWest is coordinating with its major airline partners to optimize the timing of upcoming fleet deliveries under previously announced agreements. SkyWest expects to finance the future E175 deliveries discussed below through debt. The anticipated future delivery dates summarized below are based on currently available information and are subject to change.
Flying contract with American for 20 E175 aircraft
18 aircraft were delivered in 2021 and two deliveries are expected in Q3 2022.
15 aircraft were placed into service during Q1 and Q2 2022 and five aircraft are expected to be placed into service by the end of 2022.
Flying contract with
Two aircraft were delivered in Q2 2022.
14 aircraft deliveries are anticipated in the second half of 2022.
Flying contract with
Six aircraft were delivered in Q2 2022. Four aircraft were delivered in Q1 2022 and the remaining one aircraft delivery is expected in the first half of 2023.
Combined, SkyWest anticipates placing 47 E175 aircraft into service under these three previously announced agreements by early 2023. As of
About SkyWest
SkyWest will host its conference call to discuss its second quarter 2022 results today,
SkyWest, including access information for the digital rebroadcast of the second quarter 2022 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 impact of the COVID-19 pandemic on SkyWest's business, financial condition and results of operations, the scheduled aircraft deliveries for SkyWest in upcoming periods, including the return to pre-COVID production levels and expected timing thereof, expected production levels in 2022 and associated staffing challenges, 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 forwardlooking 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, uncertainties regarding the impact of the funding received under the
Actual operational and financial results of SkyWest will likely also vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of other reasons, including, in addition to those identified above: the existing global COVID-19 pandemic and the outbreak of any other disease or similar public health threat that affects travel demand or travel behavior; 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 the duration and impact of the COVID-19 pandemic, and related decreases in customer demand and spending; the financial stability of SkyWest's major partners and any potential impact of their financial condition on the operations of SkyWest; uncertainty regarding ongoing hostility between
Condensed Consolidated Statements of Income
(Dollars and Shares in Thousands, Except per Share Amounts) (Unaudited)
Three months ended Six months ended
2022 2021 2022 2021
OPERATING REVENUES:
Flying agreements
Lease, airport services and other 25,311 24,023 52,400 47,387
Total operating revenues 799,085 656,990 1,534,237 1,191,545
OPERATING EXPENSES:
Salaries, wages and benefits 288,562 233,423 588,620 453,265
Aircraft maintenance, materials and repairs 174,883 190,879 323,296 394,706
Depreciation and amortization 97,249 109,895 199,994 219,492
Aircraft fuel 31,820 25,867 56,910 45,061
Airport-related expenses 17,490 22,038 36,695 46,486
Aircraft rentals 16,024 15,723 32,020 31,213
Payroll support grant - (114,144) - (307,317)
Other operating expenses 84,455 58,286 156,052 112,774
Total operating expenses 710,483 541,967 1,393,587 995,680
OPERATING INCOME 88,602 115,023 140,650 195,865
OTHER INCOME (EXPENSE):
Interest income 2,559 210 2,984 494
Interest expense (30,433) (33,940) (59,025) (65,294)
Other income, net 12,019 80 12,899 296
Total other expense, net (15,855) (33,650) (43,142) (64,504)
INCOME BEFORE INCOME TAXES 72,747 81,373 97,508 131,361
PROVISION FOR INCOME TAXES 18,796 19,379 25,823 33,467
NET INCOME
BASIC EARNINGS PER SHARE
DILUTED EARNINGS PER SHARE
Weighted average common shares:
Basic 50,522 50,346 50,501 50,316
Diluted 50,566 50,725 50,637 50,727
Cash and marketable securities
Other current assets 242,205 208,183
Total current assets 1,216,884 1,068,593
Property and equipment, net 5,468,163 5,373,635
Deposits on aircraft 91,813 124,964
Other long-term assets 559,787 558,755
Total assets
Current portion, long-term debt
Other current liabilities 773,415 802,823
Total current liabilities 1,198,413 1,194,621
Long-term debt, net of current maturities 2,864,483 2,717,420
Other long-term liabilities 928,720 946,392
Stockholders' equity 2,345,031 2,267,514
Total liabilities and stockholders' equity
Additional Operational Information (unaudited)
SkyWest's fleet in scheduled service or under contract by aircraft type:
E175 aircraft 223 211 193
CRJ900 aircraft 44 44 40
CRJ700 aircraft 114 114 104
CRJ200 aircraft 140 140 141
Total aircraft in service or under contract 521 509 478
As of
excluded from the table above). The E175 aircraft counts are based on delivery date.
Selected operational data:
For the three months ended
Block hours by aircraft type: 2022 2021 % Change 2022 2021 % Change
E175s 165,224 149,226 10.7 % 311,401 277,724 12.1 %
CRJ900s 27,479 29,713 (7.5)% 53,334 53,719 (0.7)%
CRJ700s 72,120 73,380 (1.7)% 139,998 136,475 2.6 %
CRJ200s 69,930 71,726 (2.5)% 141,013 132,309 6.6 %
Total block hours 334,753 324,045 3.3 % 645,746 600,227 7.6 %
Departures 199,678 185,498 7.6 % 375,889 340,392 10.4 %
Passengers carried 11,124,468 9,301,873 19.6 % 19,911,835 15,010,462 32.7 %
Adjusted flight completion 99.9 % 99.9 % - pts 99.4 % 99.9 % (0.5)pts
Raw flight completion 99.1 % 99.5 % (0.4)pts 97.7 % 98.5 % (0.8)pts
Passenger load factor 86.0 % 76.4 % 9.6 pts 82.1 % 67.6 % 14.5 pts
Average trip length 491 533 (7.9)% 503 536 (6.2)%
Adjusted flight completion percent excludes weather cancellations. Raw flight completion includes weather cancellations.
CONTACT: Investor Relations Corporate Communications
435.634.3200 435.634.3553
Investor.relations@skywest.com corporate.communications@skywest.com
(C) 2022 Electronic News Publishing, source