PR Newswire
ST. GEORGE, Utah, Oct. 27, 2016
ST. GEORGE, Utah, Oct. 27, 2016 /PRNewswire/ -- SkyWest, Inc. (NASDAQ: SKYW) today reported financial and operating results for the third quarter of 2016, including net income of $41 million or $0.79 per diluted share, up from net income of $36 million or $0.71 per diluted share in Q3 2015. Excluding the $9 million non-cash impact of early lease return charges on six CRJ700s, adjusted diluted earnings per share was $0.90 in Q3 2016. Pre-tax income for the third quarter of 2016 was $67 million compared to $60 million in Q3 2015.
Operating income was $86 million for the third quarter of 2016, compared to $78 million in Q3 2015. The improvement in operating income was primarily due to new aircraft added to profitable flying contracts, strong operating performance at SkyWest Airlines ("SkyWest Airlines") and ExpressJet Airlines ("ExpressJet") and economic benefit from SkyWest's fleet transition.
Commenting on the results, Chip Childs, SkyWest, Inc. Chief Executive Officer, said "Since early 2014, we have grown earnings by executing a complex fleet transition that added 67 new E175s and reduced our 50-seat fleet by over 120 aircraft. Our focus through 2017 will be on reducing the overall risk profile of the company, integrating the remaining deliveries of 37 E175s, optimizing how our assets and capital are deployed and positioning for future growth. Our employees have delivered amazingly well against challenging goals and have again provided our customers with solid operating performance, despite the significant changes to our fleet during the quarter."
Q3 2016 Financial Highlights
Revenue was $800 million in Q3 2016, up $6 million from Q3 2015. The increase in revenue included the net impact of adding 24 new E175 aircraft since Q3 2015 and economic improvements in certain existing flying arrangements, partially offset by the removal of 29 CRJ200 and ERJ145 aircraft and nine CRJ700s over the same period.
Operating expenses were $714 million in Q3 2016, down by $2 million from Q3 2015. The reduction is primarily related to lower direct operating costs from fewer aircraft in service, offset by $9 million in early lease return charges associated with six leased CRJ700s that were removed from service and processed for lease return during Q3 2016.
Q3 2016 Operational Update
Flight completion rates at SkyWest Airlines and ExpressJet for Q3 2016 and Q3 2015 are summarized as follows:
| | SkyWest Airlines | | ExpressJet | ||
| | Q3 2016 | Q3 2015 | | Q3 2016 | Q3 2015 |
Adjusted Completion * | | 99.9% | 99.4% | | 99.8% | 99.8% |
Raw Completion | | 99.4% | 98.7% | | 96.7% | 98.7% |
| |
* | Adjusted Completion excludes weather cancellations. Raw Completion includes weather cancellations. |
SkyWest's total fleet in service decreased by 13 aircraft during the third quarter of 2016 as follows:
Aircraft available for scheduled service at June 30, 2016: | | | 655 | |
Additions/Redeployed: | | | | |
New E175 aircraft added with Delta Air Lines ("Delta"): | 5 | | | |
New E175 aircraft added with Alaska Airlines ("Alaska"): | 4 | | | |
New E175 aircraft added with United Airlines ("United"): | 2 | | | |
Redeployed (transitioned) CRJ700 aircraft with multiple partners: | 10 | | | |
Total Additions/Redeployed: | | | 21 | |
Removals: | | |||
ERJ145 aircraft removed from service with United: | (7) | | | |
CRJ200 aircraft removed from service with multiple partners: | (11) | | | |
CRJ700 aircraft removed from service with Alaska: | (4) | | | |
CRJ700 aircraft removed from service with United: | (12) | | | |
Total Removals: | | | (34) | |
Aircraft available for scheduled service at September 30, 2016: | | | 642 | |
| | | | |
SkyWest's total fleet in service decreased by 14 aircraft from September 30, 2015 to September 30, 2016 as follows:
Aircraft available for scheduled service at September 30, 2015: | | | 656 | |
Additions/Redeployed: | | | | |
New E175 aircraft added with Alaska: | 10 | | | |
New E175 aircraft added with United: | 9 | | | |
New E175 aircraft added with Delta: | 5 | | | |
Redeployed (transitioned) CRJ700 aircraft with multiple partners: | 18 | | | |
Total Additions/Redeployed: | | | 42 | |
Removals: | | |||
ERJ145 aircraft removed from service with United: | (20) | | | |
ERJ145 aircraft removed from service with American Airlines ("American"): | (2) | | | |
CRJ200 aircraft removed from service with multiple partners (net): | (7) | | | |
CRJ700 aircraft removed from service with Alaska: | (4) | | | |
CRJ700 aircraft removed from service with United: | (23) | | | |
Total Removals: | | | (56) | |
Aircraft available for scheduled service at September 30, 2016: | | | 642 | |
| | | | |
During Q3 2016, SkyWest redeployed six CRJ700 aircraft into service under a multi-year agreement with American and redeployed four CRJ700 aircraft into service under a multi-year agreement with Delta. SkyWest previously operated the combined 10 CRJ700s under an agreement that expired with United. A total of 37 CRJ700 aircraft with scheduled contract expirations with United are scheduled to be redeployed with American by mid-2017, eliminating the related financing tail risk on these aircraft through 2019.
SkyWest anticipates its CRJ200 fleet and its ERJ145 fleet ("50-Seat Aircraft") will be reduced by approximately 16 aircraft by the end of 2016 as a result of flying agreement expirations with multiple major partners. During Q3 2016, SkyWest extended the contract term on nine CRJ200s with American from the end of 2016 to the end of Q3 2017.
Under a previously announced lease return arrangement, SkyWest is currently scheduled to return 11 additional CRJ700s over the next six months. If the aircraft are returned as scheduled, SkyWest anticipates largely non-cash termination costs of approximately $15-17 million (pre-tax), which will be recognized as the aircraft are removed from service and processed.
The following table outlines SkyWest's anticipated delivery schedule for new E175 aircraft through the end of 2017:
| E175 Aircraft Scheduled Deliveries | | |||
| Total in-service September 30, 2016 | Q4 2016 | Q1 2017 | Q2-Q4 2017 | Total anticipated in-service by end of 2017 Werbung Mehr Nachrichten zur Skywest Inc Aktie kostenlos abonnieren
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