Air101

SkyWest, the regional carrier that operates flights for other airlines in the US, reported its financial and operating results for Q3 2024, including net income of $90 million, or $2.16 per diluted share, compared to net income of $23 million, or $0.55 per diluted share, for Q3 2023.

Commenting on the results, Chip Childs, Chief Executive Officer of SkyWest, said, “Our ability to organically grow the number of available captains for the first three quarters of 2024 has opened up incremental growth vectors for us. We are making significant progress in recapturing underserved markets, increasing fleet utilization and quickly placing new aircraft deliveries into service. I want to thank our people for their amazing work as we continue to execute these opportunities, including the expansion of our CRJ550 and E175 fleets.”

Financial Results

Revenue was $913 million in Q3 2024, up $147 million, or 19%, from $766 million in Q3 2023. SkyWest’s block hour production increased 15% in Q3 2024 compared to Q3 2023, which reflects improvements in captain availability since Q3 2023.

For purposes of revenue comparability year-over-year, SkyWest recognized $19 million of previously deferred revenue under its flying contracts during Q3 2024, compared to deferring $57 million of revenue during Q3 2023. As of September 30, 2024, SkyWest had cumulative deferred revenue of $342 million under its flying contracts on its balance sheet.

Operating expenses were $781 million in Q3 2024, up $64 million, or 9%, from $717 million in Q3 2023, driven by an incremental increase in flight production year-over-year.

Capital and Liquidity

SkyWest had $836 million in cash and marketable securities at September 30, 2024, similar to the $835 million balance at December 31, 2023.

Total debt at September 30, 2024 was $2.7 billion, down from $3.0 billion at December 31, 2023. Capital expenditures during Q3 2024 were $97 million for the purchase of aircraft, spare engines and other fixed assets.

Under its previously announced share repurchase program authorized by the SkyWest Board of Directors in May 2023, SkyWest repurchased 217,000 shares of common stock for $16.3 million during Q3 2024 at an average price per share of $74.98. As of September 30, 2024, SkyWest had $53 million of remaining availability under its current share repurchase program.

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 three quarters of 2024 and anticipated future deliveries during the periods indicated based on currently available information, which is subject to change.

	Completed YTD Q3 2024		Q4 2024		2025		2026		Total
Delta Air Lines		1		ꟷ		ꟷ		ꟷ		1
United Airlines(1)		20		4		7		8		39
Alaska Airlines		ꟷ		ꟷ		1		ꟷ		1
Total		21		4		8		8		41
(1) The 20 E175 deliveries completed year-to-date Q3 2024 were partner-financed aircraft.

 

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SkyWest, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Dollars and Shares in Thousands, Except per Share Amounts) (Unaudited)
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2024			2023			2024			2023
OPERATING REVENUES:
Flying agreements		$	883,494		$	741,898		$	2,499,953		$	2,106,130
Lease, airport services and other			29,292			24,273			83,565			77,515
Total operating revenues			912,786			766,171			2,583,518			2,183,645
OPERATING EXPENSES:
Salaries, wages and benefits			377,435			333,017			1,083,439			990,659
Aircraft maintenance, materials and repairs			181,652			178,465			510,334			483,182
Depreciation and amortization			96,662			96,560			289,346			287,878
Aircraft fuel			22,724			23,330			65,216			62,573
Airport-related expenses			22,642			18,398			61,065			53,648
Aircraft rentals			1,339			2,099			3,925			24,055
Other operating expenses			78,897			65,011			219,612			205,203
Total operating expenses			781,351			716,880			2,232,937			2,107,198
OPERATING INCOME			131,435			49,291			350,581			76,447
OTHER INCOME (EXPENSE):
Interest income			12,460			11,234			36,126			31,761
Interest expense			(27,808)			(32,543)			(86,603)			(99,881)
Other income (loss), net			109			(3,631)			(1,567)			7,544
Total other expense, net			(15,239)			(24,940)			(52,044)			(60,576)
INCOME BEFORE INCOME TAXES			116,196			24,351			298,537			15,871
PROVISION (BENEFIT) FOR INCOME TAXES			26,487			873			72,952			(955)
NET INCOME		$	89,709		$	23,478		$	225,585		$	16,826
BASIC EARNINGS PER SHARE		$	2.23		$	0.56		$	5.61		$	0.37
DILUTED EARNINGS PER SHARE		$	2.16		$	0.55		$	5.44		$	0.37
Weighted average common shares:
Basic			40,253			41,826			40,244			45,018
Diluted			41,561			42,580			41,495			45,540

SkyWest, Inc. and Subsidiaries Summary of Consolidated Balance Sheets (Dollars in Thousands) (Unaudited)
	September 30,			December 31,
	2024			2023
Cash and marketable securities	$	836,042		$	835,223
Other current assets		298,175			296,673
Total current assets		1,134,217			1,131,896
Property and equipment, net		5,345,811			5,405,685
Deposits on aircraft		71,457			77,282
Other long-term assets		405,115			411,430
Total assets	$	6,956,600		$	7,026,293
Current portion, long-term debt	$	496,789		$	443,869
Other current liabilities		817,385			810,423
Total current liabilities		1,314,174			1,254,292
Long-term debt, net of current maturities		2,196,548			2,562,183
Other long-term liabilities		1,134,381			1,096,316
Stockholders' equity		2,311,497			2,113,502
Total liabilities and stockholders' equity	$	6,956,600		$	7,026,293

SkyWest, Inc. and Subsidiaries Additional Operational Information (unaudited)
SkyWest’s fleet in scheduled service or under contract by aircraft type:
		September 30, 2024		December 31, 2023		September 30, 2023
E175 aircraft		258		237		235
CRJ900 aircraft		36		41		37
CRJ700 aircraft (1)		109		118		117
CRJ200 aircraft		81		89		104
Total aircraft in service or under contract		484		485		493
___________________________
(1) Includes CRJ550 aircraft, a 50-seat configuration of the CRJ700 aircraft.