SkyWest Reports Third-quarter Net Profit of US$48m
Utah-based airline SkyWest (OO) announced a US$48m profit (US$0.96 per diluted share) for the third quarter of 2022.
Utah-based airline SkyWest (OO) announced a US$48m profit (US$0.96 per diluted share) for the third quarter of 2022.
DALLAS - Utah-based airline SkyWest (OO) announced a US$48m profit (US$0.96 per diluted share) for the third quarter ending September 30, 2022. The feat was achieved amid a "crew imbalance" stemming from global pilot shortages, said chief executive Chip Childs on October 27, 2022.
The regional carrier—which contracts with Alaska Airlines (AS), Delta Air Lines (DL), and United Airlines (UA)—recorded a 6% increase in revenue, totaling US$789m, when compared to the third quarter in 2021,
The airline's jump in revenue follows a fleet increase of 33 E175 aircraft since 2021's Q3 along with the removal of the COVID-19 partner revenue concessions from Q3 last year. "We continue to experience strong demand for our product and our operational performance through the busy summer season was strong with 99.9% adjusted completion this quarter," said Childs.
At the end of the quarter, OO held US$1bn in cash and marketable securities, representing an increase when compared to Q2 2022 (US$975m) and Q4 2021 (US$860m).
Operating expenses stood at US$714m, which represents a 2% increase when compared to Q3 of 2021 (US$698m). The increase in expenses mainly resulted from the increase in salaries, wages, and benefits.
These expenses were offset by a reduction in maintenance costs begun in Q3 2021. Total debt was recorded at US$3.4bn up from US$3.3bn for the previous quarter ending June 30, 2022.
The total debt figure is explained by the financing of nine new E175 aircraft delivered in Q3— capital expenditures were US$224m for the purchasing of the aircraft along with other fixed costs.
The carrier expects delivery of four more E175s in Q4 and predicts that it will only be "slightly profitable" for the last quarter of the year, making modest profits" said CFO Robert Simmons.
"We expect that the timing required for training and upgrades will likely constrain production into late 2023 and early 2024," Childs said.
The regional carrier is also collaborating with the DOT to authorize SkyWest Charter, OO's subsidiary charter operation, which will connect secondary cities starting in early 2023.
If authorization is granted, OO could hire less experienced pilots to fly these secondary routes, which could aid in quelling the current pilot shortages.
Featured image: SkyWest (Alaska Airlines). Photo: Michael Rodeback/Airways
.webp)
David H. Stringer, the History Editor for AIRWAYS Magazine, has chronicled the story of the commercial aviation industry with his airline history articles that have appeared in AIRWAYS over two decades. Here, for the first time, is a compilation of those articles.
Subjects A through C are presented in this first of three volumes. Covering topics such as the airlines of Alaska at the time of statehood and Canada's regional airlines of the 1960s, the individual histories of such carriers as Allegheny, American, Braniff, and Continental are also included in Volume One. Get your copy today!
