Business
SkyWest, Inc. Announces First Quarter 2020 Profit
ST. GEORGE, Utah, May 7, 2020 /PRNewswire/ -- First Quarter Highlights: Net income of $30 million, or $0.59 per diluted share Placed four of 25 used E175
About this update from Skywest, Inc.
[{"type":"text","content":"ST. GEORGE, Utah, May 7, 2020 /PRNewswire/ --\nFirst Quarter Highlights:\nNet income of $30 million, or $0.59 per diluted share Placed four of 25 used E175 aircraft into service under a previously announced agreement with United Airlines Working with our major airline partners on fleet solutions in response to the COVID-19 demand disruptionSkyWest, Inc. (NASDAQ: SKYW) (\"SkyWest\") today reported financial and operating results for Q1 2020, including net income of $30 million, or $0.59 per diluted share, compared to net income of $88 million, or $1.69 per diluted share, for Q1 2019. Adjusted net income in Q1 2019 was $69 million, or $1.33 per diluted share, excluding the gain on the sale of ExpressJet and other special items1. The primary factor in SkyWest's lower earnings in Q1 2020 compared to Q1 2019 was decreased demand in March 2020 resulting from the COVID-19 outbreak.\nCommenting on the results, Chip Childs, Chief Executive Officer of SkyWest, said, \"COVID-19 has caused unprecedented disruption across the airline industry. Our priority is the safety and well-being of our people and passengers, and we have taken numerous steps to that end. We are taking aggressive action to maintain strong liquidity and work collaboratively with our partners on flexible fleet solutions during this period of uncertainty. I want to thank our 14,000 employees for their resilience, commitment and flexibility during this pandemic.\"\nFinancial HighlightsRevenue was $730 million in Q1 2020, up from $724 million in Q1 2019, primarily from the impact of adding 16 E175 aircraft since Q1 2019, partially offset by reduced passenger demand resulting from the COVID-19 pandemic in March 2020. For comparability purposes, SkyWest's Q1 2019 results included ExpressJet January 2019 revenue of $24 million.\nOperating expenses were $664 million in Q1 2020, up from $627 million in Q1 2019, primarily from additional aircraft maintenance and depreciation on aircraft and spare engines in Q1 2020 compared to the same period in 2019. For comparability purposes, SkyWest's Q1 2019 results included ExpressJet January 2019 operating expense of $29 million.\nOperational Update on Previously Announced DealsSkyWest is coordinating with its major airline partners to optimize the timing of upcoming fleet deliveries under previously announced deals in response to COVID-19 s...