US regional operator SkyWest earns $17 million 2Q net profit
Published: August 8, 2012
SkyWest Inc., the parent of St. George, Utah-based SkyWest Airlines and Atlanta-based ExpressJet Airlines, posted a second-quarter net profit of $ 17 million, improved over $ 1.6 million in net income in the 2011 June quarter. “We are well on our way to returned and sustained profitability,” president Brad Rich told analysts and reporters.
Second-quarter revenue rose just 0.4% year-over-year to $ 937.2 million, but expenses lowered 2.7% to $ 890.4 million, producing operating income of $ 46.8 million, well more than doubling a $ 19 million operating profit in the prior-year period.
“The [expense] decrease was primarily the result of SkyWest’s implementation of planned cost reduction efforts, which resulted in reduced crew-related and non-pass through maintenance costs of approximately $ 13.6 million,” the company said in a statement. “SkyWest also experienced a reduction in engine overhaul costs of approximately $ 9.3 million, which are considered pass-through costs under its contracts with its major partners.”
Second-quarter traffic increased 1.9% year-over-year to 7.69 billion RPMs on a 0.5% dip in capacity to 9.34 billion ASMs, producing a load factor of 82.3%, up 2 points. Yield was flat year-over-year at 12 cents.
SkyWest ended the quarter with 725 aircraft, unchanged from the prior-year period. It recently reached an agreement with Delta Air Lines enabling it to take delivery 34 Bombardier CRJ700s/900s while removing 66 older CRJ200s from its fleet ( ATW Daily News, Aug. 2 ). Last month, it signed an agreement in principle to acquire 100 Mitsubishi Regional Jets ( ATW Daily News, July 11 ). The MRJ agreement “positions us in a significant way for the fleet replacement we’ll have to do in the next 5-10 years,” Rich said.