SkyWest, Inc. Announces Second Quarter 2020 Results

Operational Update on Previously Announced Deals
SkyWest is coordinating with its major airline partners to optimize the timing of upcoming fleet deliveries under previously announced deals in response to COVID-19 schedule reductions. The anticipated future delivery dates summarized below are based on currently available information and are subject to change.

Flying contract with United Airlines ("United")
Twenty-five used E175 aircraft financed by United and operated by SkyWest:

• 21 used E175s were delivered during Q2 2020
• All 25 used aircraft have been delivered under this agreement as of June 30, 2020

Flying contract with Delta Air Lines ("Delta")
Six new E175 aircraft to be financed and operated by SkyWest:

• Two new E175 aircraft were delivered during Q2 2020
• Four new E175 aircraft are scheduled for delivery by the end of 2020
• Normal cash down-payments are already covered by deposits paid last year

Six used E175s and one new CRJ900 aircraft financed by Delta and operated by SkyWest:

• Three used E175 aircraft were delivered during Q2 2020
• All six used E175 aircraft have been delivered under this agreement as of June 30, 2020
• One new CRJ900 aircraft is scheduled for delivery by the end of 2020

SkyWest still anticipates removing four CRJ900 aircraft and one CRJ700 aircraft from its flying agreement with Delta by the end of 2020.

Flying contract with American Airlines ("American")
Twenty new E175 aircraft to be financed and operated by SkyWest:

• Aircraft deliveries are anticipated from Q4 2021 through mid-2022
• SkyWest anticipates financing the aircraft through debt

Fleet changes under the American flying agreements
SkyWest has a flying contract with American to operate a total of 70 CRJ700 aircraft, of which 61 aircraft were in-service at June 30, 2020. SkyWest anticipates placing the remaining nine aircraft in-service from late 2020 through the first half of 2021. SkyWest and American also terminated the prorate flying agreement for seven CRJ200 aircraft during Q2 2020.

Delta flying contract for CRJ200 aircraft
As previously announced, SkyWest's capacity purchase agreement with Delta for CRJ200 aircraft is scheduled to expire in 2020. SkyWest removed 19 Delta leased CRJ200 aircraft from the contract during Q2 2020. SkyWest owns the remaining 36 CRJ200 aircraft under contract and has no outstanding financing obligations on these aircraft. SkyWest anticipates removing the remaining 36 CRJ200s from the contract by the end of 2020.

Lease agreement with a third party for CRJ700 aircraft
As of June 30, 2020, SkyWest had 13 CRJ700 aircraft under a previously-announced lease agreement with a third party under a ten-year lease term. Due to the demand disruption from COVID-19, the parties have suspended placement of additional CRJ700 aircraft under this lease agreement.

Capital and Liquidity

SkyWest had $762 million in cash and marketable securities at June 30, 2020, up from $578 million at March 31, 2020. As previously announced, SkyWest entered into a Payroll Support Program Agreement ("PSP Agreement") with the U.S. Treasury Department under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") in April 2020. Pursuant to the PSP Agreement, SkyWest expects to receive from Treasury installments totaling approximately $438 million, including approximately $337 million in the form of direct grants and approximately $101 million in the form of unsecured debt. During Q2 2020, SkyWest received $307 million in payroll support under the PSP Agreement, of which $62 million was unsecured debt. SkyWest anticipates receiving the remaining payroll support amount of $131 million during Q3 2020, of which $39 million will be unsecured debt.

Capital expenditures during Q2 2020 included $43 million for the acquisition of two new E175 aircraft that were financed through debt and previously-made deposits and $50 million for spare engines and other maintenance assets.

Total debt at June 30, 2020 was $3.0 billion, up from $2.9 billion as of March 31, 2020. The higher debt was driven by an increase of $62 million from the CARES Act payroll support unsecured loan, and $36 million from the two newly-delivered E175s. SkyWest expects the CARES Act payroll support unsecured loan will increase by $39 million to a total of $101 million by the end of Q3 2020. As of June 30, 2020, SkyWest had a $75 million line of credit facility. SkyWest had approximately $9 million of letters of credit issued under the facility and $66 million available under the line.

In July 2020, SkyWest executed a non-binding letter of intent with the U.S. Treasury Department for approximately $497 million in secured loans under the CARES Act. SkyWest is currently evaluating the timing and level of participation in this loan program.

About SkyWest

SkyWest, Inc. is the holding company for SkyWest Airlines and SkyWest Leasing, an aircraft leasing company. SkyWest Airlines has a fleet of nearly 500 aircraft connecting passengers to over 250 destinations throughout North America. SkyWest Airlines operates through partnerships with United Airlines, Delta Air Lines, American Airlines and Alaska Airlines carrying more than 43 million passengers in 2019.

SkyWest will host its conference call to discuss second quarter 2020 results today, July 30, 2020, at 2:30 p.m. Mountain Time. The conference call number is 1-877-418-5293 for domestic callers, 1-866-605-3852 for Canada callers and 1-412-717-9593 for other international callers. Please call up to ten minutes in advance to ensure you are connected prior to the start of the call. The conference call will also be available live on the Internet at https://www.webcaster4.com/Webcast/Page/1088/35665. This press release and additional information regarding SkyWest, including access information for the digital rebroadcast of the second quarter 2020 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 expected terms, timing and benefits of the CARES Act funding, the impact of the COVID-19 outbreak on SkyWest's business, financial condition and results of operations, the scheduled aircraft deliveries for SkyWest Airlines in upcoming years, and related removal from service and/or placement into service of certain aircraft, SkyWest's coordination with major airline partners to optimize the delivery of aircraft under previously announced deals, 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 forward-looking statements for any reason. 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 CARES Act funding on SkyWest's business and operations, the consequences of the COVID-19 outbreak to economic conditions, the travel industry and our major partners in general and the financial condition and operating results of SkyWest in particular, the prospects of entering into agreements with existing or other carriers to fly new aircraft, ongoing negotiations between SkyWest and its major partners regarding their contractual obligations, uncertainties regarding operation of new aircraft, the ability to attract and retain qualified pilots, the impact of regulatory issues such as pilot rest rules and qualification requirements, and the ability to obtain aircraft financing.

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; fluctuations in flight schedules, which are determined by the major partners for whom SkyWest conducts flight operations; variations in market and economic conditions; significant aircraft lease and debt commitments; estimated useful life of long-lived assets, residual aircraft values and related impairment charges; labor relations and costs; the impact of global instability; rapidly fluctuating fuel costs, and potential fuel shortages; the impact of weather-related or other natural disasters on air travel and airline costs; aircraft deliveries; and other unanticipated factors. Risk factors, cautionary statements and other conditions which could cause SkyWest's actual results to differ materially from management's current expectations are contained in SkyWest's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

SkyWest, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Loss) (Dollars and Shares in Thousands, Except per Share Amounts) (Unaudited)
	Three Months Ended June 30				Six Months Ended June 30
	2020		2019		2020		2019
OPERATING REVENUES
Flying agreements	$         336,370		$       725,335		$       1,045,864		$      1,425,336
Lease, airport services and other	13,669		19,048		34,111		42,741
Total operating revenues	350,039		744,383		1,079,975		1,468,077
OPERATING EXPENSES
Salaries, wages and benefits	170,218		243,766		419,379		501,354
Aircraft maintenance, materials and repairs	121,289		124,789		281,505		243,051
Depreciation and amortization	131,638		90,148		243,346		180,134
Airport-related expenses	21,550		30,782		52,190		61,429
Aircraft fuel	6,821		30,851		32,234		56,507
Aircraft rentals	16,697		18,006		33,752		38,164
CARES Act payroll support grant	(151,938)		-		(151,938)		-
Special items	-		-		-		21,869
Other operating expenses	38,167		61,948		107,589 Werbung Mehr Nachrichten zur Skywest Inc Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 11:06 - PR Newswire Bodycote Plc - Bodycote plc - Holding(s) in Company 10:54 - PR Newswire Capital for Colleagues Plc - Shareholding in the Company 09:40 - PR Newswire Norges Bank - Form 8.3 - BHP Group Limited Saubere Energie    Milliardärsinvestoren sehen enorme Chancen in der alternativen Energie der nächsten Generation weiterlesen» Anzeige wo-site-teaser-box-16797_site-teaser-box_2024-04-30_07%253A00%253A00_2024-05-01_09%253A00%253A59