Business
SkyWest, Inc. Announces Second Quarter 2019 Profit
ST. GEORGE, Utah, July 31, 2019 /PRNewswire/ -- Second Quarter Highlights: Net income of $88 million, or $1.71 per diluted share, up from $76 million, or
About this update from Skywest, Inc.
[{"type":"text","content":"ST. GEORGE, Utah, July 31, 2019 /PRNewswire/ -- \nSecond Quarter Highlights:\nNet income of $88 million, or $1.71 per diluted share, up from $76 million, or $1.43 per diluted share in Q2 2018 Pre-tax income of $115 million, up from $98 million in Q2 2018 Placing ten used CRJ700s into a flying contract with American Airlines beginning early 2020 SkyWest, Inc. (NASDAQ: SKYW) (\"SkyWest\") today reported financial and operating results for Q2 2019, including net income of $88 million, or $1.71 per diluted share, compared to net income of $76 million, or $1.43 per diluted share, for Q2 2018. Pre-tax income in Q2 2019 was $115 million, a 17% increase from Q2 2018 primarily due to SkyWest's ongoing fleet transition. SkyWest has added 25 new E175 aircraft and 11 new CRJ900 aircraft since Q2 2018 and has reduced aircraft ownership costs through early lease buyouts on 52 aircraft executed in early 2019. \nCommenting on the results, Chip Childs, Chief Executive Officer and President of SkyWest, said, \"This quarter we were pleased to demonstrate our ability to deploy capital and unlock growth opportunities within our partners' existing scope constraints. I want to thank our outstanding SkyWest professionals for the service they provide to our customers.\"\nFinancial HighlightsRevenue was $744 million in Q2 2019, down from $806 million in Q2 2018 due to the sale of ExpressJet Airlines (\"ExpressJet\") in January 2019. Excluding ExpressJet revenue in Q2 2018, Q2 2019 revenue increased $82 million, primarily from adding 36 new aircraft since Q2 2018. \nOperating expenses were $600 million in Q2 2019, down from $679 million in Q2 2018 also due to the sale of ExpressJet. Excluding ExpressJet operating expenses in Q2 2018, Q2 2019 operating expenses increased $70 million, primarily from growth in operations as a result of additional aircraft placed into service since Q2 2018 and from higher labor costs. \nOperational Update Flying contract updatesSkyWest announced an agreement with American Airlines (\"American\") to place ten used CRJ700s under a multi-year contract beginning early 2020. SkyWest anticipates acquiring seven CRJ700 aircraft from a third party and internally sourcing three CRJ700 aircraft through upcoming scheduled contract expirations.\nDelivery update on new aircraft for DeltaE175 aircraft to be financed by SkyWest and operated...