US regional carrier SkyWest has turned in a solid third quarter result, posting revenue of $789 million and a net income of $48 million. For the same January to September period last year, SkyWest generated $745 million in revenue and a net income of $10 million.
Adding E175s is paying off for SkyWest
Photo: Jay Singh | Simple Flying
SkyWest attributed the bump in revenue to adding 33 Embraer E175 aircraft over the last twelve months and eliminating the COVID-19 partner revenue concessions from Q3 2021. In the results announcement on Thursday, Skywest CEO Chip Childs said the airline is continuing to see strong demand for its services, adding:
“Our operational performance through the busy summer season was strong, with 99.9% adjusted completion this quarter. We were pleased to have finalized new salary scales for our pilots during the quarter and continue efforts to stabilize our crew imbalance.”
The crew imbalance is a lack of pilots, which prompted SkyWest to announce it was suspending Essential Air Services to 29 cities, although the US Department of Transport blocked that move. In September, it tried a new recruiting tactic by doubling pilot pay, the effects of which have already put a dent in Q3 earnings. Operating expenses climbed from $698 million in Q3 2021 to $714 million this year, with the airline saying it was “primarily due to an increase in salaries, wages and benefits.”
A fleet of more than 500 aircraft
SkyWest uses a fleet of more than 500 aircraft to connect more than 230 destinations throughout North America. It is the largest regional airline in the US, operating contracted flights for Alaska Airlines, American Airlines, Delta Air Lines and United Airlines. Respectively these services are branded as Alaska SkyWest, American Eagle, Delta Connection and United Express. In 2021, SkyWest carried more than 36 million passengers.
On its fleet arrangements with partner airlines, SkyWest expects to place 47 Embraer E175s into service by late 2025, with 39 already in service by the end of September this year. Of the eight to come, seven will be used on the flying contract with Delta Air Lines, and one will operate for Alaska Airlines. By the end of 2025, the airline says it will have 240 E175s in operation, making it the dominant aircraft operated by SkyWest.
Load factors are making the difference
Photo: Skywest
Looking at the nine months ending September 30th (9m 2022), SkyWest has posted revenue of $2.3 billion and net income of $120 million, compared to $1.94 billion and $108 million, respectively, last year. In the same period, SkyWest carried 30.6 million passengers, an 18% gain over 2021, and operated 570,572 flights, just 3% more than the 550,643 it departed in 2021. This is reflected in the load factor climbing from 72% in 9m 2021 to 83% in 9m 2022.
At the end of Q3, Skywest fleet in scheduled service or under contract contained the following aircraft:
- 232 Embraer E175
- 44 Bombardier CRJ900
- 114 Bombardier CRJ700
- 140 Bombardier CRJ200.
The total of 530 is 44 more aircraft than on September 30th, 2021 and does not include 35 CRJ700s and five CRJ900s leased to third parties. SkyWest had $1 billion in cash and marketable securities at the end of Q3, with total debt of $3.4 billion.
Have you flown on a Skywest plane and thought it was from a mainline carrier?
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Embraer
- Stock Code:
- ERJ
- Date Founded:
- 1969-08-19
- CEO:
- Francisco Gomes Neto
- Headquarters Location:
- Sao Paulo, Brazil
- Key Product Lines:
- Embraer 170, Embraer 175, Embraer 190, Embraer 195, Embraer 175-E2, Embraer 190-E2, Embraer 195-E2
- Business Type:
- Planemaker
Source: simpleflying.com
