SkyWest reports second quarter 2018 profit

SkyWest has released financial and operating results for the second quarter 2018, including net income of US$76 million compared to net income of US$50 million for the second quarter of 2017. Pre-tax income of US$98 million increased 21% from the previous year and was primarily due to SkyWest’s ongoing fleet transition. Since the second quarter 2017, SkyWest has added 23 new E175 aircraft and removed 34 CRJ700/CRJ900 aircraft and 32 CRJ200/ERJ145 aircraft.

Revenue was US$806 million in the second quarter, up from US$792 million in 2017. The increase in revenue included the net impact of adding 23 new E175 aircraft and other economic improvements within SkyWest’s fleet mix since the second quarter 2017, partially offset by the removal of unprofitable or less-profitable aircraft over the same period.

Operating expenses were US$679 million, down from US$685 million in 2017. The decrease in operating expenses was primarily due to the reduction in direct operating costs with the net removal of 43 aircraft from service.

SkyWest has signed a new agreement to operate 20 new CRJ900s for Delta Air Lines under a nine-year term, replacing 20 CRJ700s expiring from contract and a new agreement to place 20 used CRJ700s with American Airlines under a four-year term. Furthermore SkyWest has signed a three-year extension on 19 CRJ700s scheduled to expire in 2019/2020 with United Airlines and has reached a new agreement to place 20 internally-sourced CRJ200s under a three-year contract with United.

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