SkyWest, Inc. (SKYW) Bundle
A Brief History of SkyWest, Inc.
As of 2024, SkyWest, Inc. continues to be a significant player in the regional airline sector, primarily operating under the SkyWest Airlines and SWC brands. The company has shown remarkable growth in its financial performance compared to previous years.
Financial Performance Overview
For the nine months ended September 30, 2024, SkyWest reported total operating revenues of $2.58 billion, an 18.3% increase from $2.18 billion for the same period in 2023. This growth is attributed to increased capacity and higher block hour production.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Operating Revenues | $2,583,518,000 | $2,183,645,000 | $399,873,000 | 18.3% |
| Net Income | $225,635,000 | $20,444,000 | $205,191,000 | 1,002.8% |
| Earnings Per Share (Diluted) | $5.44 | $0.37 | $5.07 | 1,370.3% |
Operational Statistics
SkyWest Airlines and SWC segment profit for the nine months ended September 30, 2024, was $263.98 million, compared to a loss of $23.43 million in the same period of 2023. This significant turnaround reflects improved operational efficiency and demand recovery in the airline industry.
| Operational Statistics | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Block Hours | 941,722 | 849,689 | +10.8% |
| Passengers Carried | 4,500,000 | 3,800,000 | +18.4% |
| Operating Expenses | $2,232,937,000 | $2,107,198,000 | $125,739,000 |
Debt and Capital Structure
As of September 30, 2024, SkyWest had total outstanding debt of $2.71 billion, down from $3.03 billion a year earlier, reflecting a strategic focus on reducing leverage while maintaining operational flexibility.
| Debt Metrics | As of September 30, 2024 | As of September 30, 2023 | Change |
|---|---|---|---|
| Total Debt | $2,714,421,000 | $3,030,310,000 | -$315,889,000 |
| Cash and Cash Equivalents | $177,609,000 | $148,277,000 | +$29,332,000 |
Fleet and Future Outlook
SkyWest's fleet is set to evolve with the addition of new aircraft, including 19 E175 aircraft scheduled for delivery between 2024 and 2026. The company aims to enhance profitability by upgrading its fleet to more efficient aircraft while phasing out older models.
Investment in Strategic Partnerships
SkyWest has also been active in strategic investments, including a significant stake in Contour Airlines and partnerships aimed at expanding its service offerings. The company’s investment in Contour as of September 30, 2024, was $24.4 million, reflecting its commitment to diversifying its operational capabilities.
| Investment Metrics | Investment in Contour (2024) | Investment in Contour (2023) | Change |
|---|---|---|---|
| Total Investment | $24,400,000 | $9,900,000 | +$14,500,000 |
SkyWest's strategic initiatives, robust financial performance, and operational efficiency position it well for continued growth in the regional airline market as of 2024.
A Who Owns SkyWest, Inc. (SKYW)
Major Shareholders
As of 2024, SkyWest, Inc. (SKYW) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 10.5% | Institutional |
| BlackRock, Inc. | 9.8% | Institutional |
| State Street Corporation | 7.2% | Institutional |
| Dimensional Fund Advisors LP | 3.9% | Institutional |
| Invesco Ltd. | 3.4% | Institutional |
| FMR LLC (Fidelity) | 2.6% | Institutional |
| Individual Investors | 59.0% | Individual |
Board of Directors
The governance of SkyWest, Inc. is overseen by a board of directors, which is composed of various members with significant experience in aviation, finance, and corporate governance. As of 2024, the board includes:
- Jerry C. Atkin - Executive Chairman
- Chip Childs - President and Chief Executive Officer
- Michael J. McCarthy - Director
- Kristin J. H. G. Sweeney - Director
- David M. Hargreaves - Director
- Christine L. DeVoe - Director
Recent Stock Performance
SkyWest, Inc. has shown a notable performance in the stock market. As of September 30, 2024, the stock price was approximately $72.30, reflecting a significant increase from previous quarters. The following table outlines the stock performance over the past year:
| Date | Stock Price ($) | Change (%) |
|---|---|---|
| September 30, 2023 | 25.44 | - |
| December 31, 2023 | 54.00 | 112.3% |
| March 31, 2024 | 62.50 | 15.3% |
| June 30, 2024 | 70.00 | 11.9% |
| September 30, 2024 | 72.30 | 3.3% |
Financial Overview
SkyWest, Inc. reported total operating revenues of $912.8 million for the third quarter of 2024, compared to $766.2 million in the same period of 2023, marking a 19.1% increase. The net income for the third quarter of 2024 was $89.7 million, or $2.16 per diluted share, compared to $23.5 million, or $0.55 per diluted share in the third quarter of 2023.
Debt and Liquidity Position
As of September 30, 2024, SkyWest, Inc. had total long-term debt of approximately $2.7 billion, which includes $2.5 billion for aircraft financing and $200.6 million owed to the U.S. Department of the Treasury. The average effective interest rate on this debt was about 4.1%.
Investment and Joint Ventures
The company has made significant investments in strategic partnerships. As of September 30, 2024, SkyWest, Inc. held a 25% ownership interest in Corporate Flight Management, Inc. (Contour Airlines), with an investment balance of $24.4 million.
Conclusion
SkyWest, Inc. continues to maintain a robust ownership structure, with significant institutional investment and a strong board of directors guiding its strategic direction. Its financial performance reflects a healthy growth trajectory, supported by effective management of its operational and financial resources.
SkyWest, Inc. (SKYW) Mission Statement
Company Overview
SkyWest, Inc. operates as a regional airline holding company in the United States and is a major provider of regional airline services. As of 2024, it partners with major airlines to provide essential air service across North America.
Mission Statement
SkyWest, Inc. is committed to delivering exceptional airline services through a focus on safety, customer satisfaction, and operational excellence. The company aims to be the regional carrier of choice while providing its partners with reliable, efficient, and cost-effective services.
Financial Performance Overview
As of September 30, 2024, SkyWest reported total operating revenues of $912.8 million for the third quarter, marking a 19.1% increase from $766.2 million in the same period in 2023. The net income for the third quarter was $89.7 million, or $2.16 per diluted share, compared to $23.5 million, or $0.55 per diluted share, for the same quarter in 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Operating Revenues | $912.8 million | $766.2 million | 19.1% |
| Net Income | $89.7 million | $23.5 million | 280.4% |
| EPS (Diluted) | $2.16 | $0.55 | 292.7% |
Operational Highlights
SkyWest's operational efficiency is illustrated by the increase in block hours from 290,830 in Q3 2023 to 334,459 in Q3 2024, representing a 15.0% increase. The number of aircraft in service decreased from 493 to 484 over the same period.
Segment Performance
SkyWest operates through two primary segments: SkyWest Airlines and SkyWest Leasing. For Q3 2024, the operating revenue for SkyWest Airlines was $758.4 million, an increase of 21.0% compared to $626.8 million in Q3 2023. The SkyWest Leasing segment generated $154.4 million, up by 10.7% from $139.4 million in Q3 2023.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| SkyWest Airlines | $758.4 million | $626.8 million | 21.0% |
| SkyWest Leasing | $154.4 million | $139.4 million | 10.7% |
Capital Structure
As of September 30, 2024, SkyWest's total long-term debt stood at approximately $2.7 billion. The company maintained a balanced capital structure with 51.3% equity and 48.7% long-term debt.
Liquidity Position
SkyWest had $836.0 million in cash and marketable securities as of September 30, 2024, providing a solid liquidity cushion to support ongoing operations and strategic initiatives.
Share Repurchase Program
During the nine months ended September 30, 2024, SkyWest repurchased 0.5 million shares of common stock for $38.4 million at an average price of $72.30 per share.
Conclusion
SkyWest, Inc. continues to strengthen its market position through strategic growth, operational efficiencies, and a commitment to high-quality service. The company remains focused on driving shareholder value while maintaining strong partnerships with major airlines.
How SkyWest, Inc. (SKYW) Works
Business Model
SkyWest, Inc. operates primarily through two segments: SkyWest Airlines and SkyWest Leasing. The majority of its revenue is generated through capacity purchase agreements with major airlines, where they provide regional flight services. As of September 30, 2024, capacity purchase revenue accounted for approximately 86.8% of total flying agreement revenue, while prorate and SWC revenue represented about 13.2%.
Financial Performance
For the three months ending September 30, 2024, SkyWest reported total operating revenues of $912.8 million, a 19.1% increase from $766.2 million in the same period of 2023. Net income for this period was $89.7 million, or $2.16 per diluted share, compared to $23.5 million, or $0.55 per diluted share, for the same quarter in 2023.
Operational Statistics
The following table summarizes the operational statistics for the nine months ended September 30, 2024:
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Block hours | 941,722 | 849,689 | 10.8% |
| Departures | 560,154 | 514,529 | 8.9% |
| Passengers carried | 31,103,792 | 28,671,654 | 8.5% |
| Passenger load factor | 83.0% | 83.7% | (0.7) pts |
| Average passenger trip length (miles) | 467 | 456 | 2.4% |
Revenue Breakdown
The operating revenues for the nine months ended September 30, 2024, were as follows:
| Source | 2024 Revenue ($000) | 2023 Revenue ($000) | % Change |
|---|---|---|---|
| Flying agreements | 2,499,953 | 2,106,130 | 18.7% |
| Lease, airport services and other | 83,565 | 77,515 | 7.8% |
| Total Operating Revenues | 2,583,518 | 2,183,645 | 18.3% |
Operating Expenses
Operating expenses for the nine months ending September 30, 2024, showed the following breakdown:
| Expense Type | 2024 Expense ($000) | 2023 Expense ($000) | % Change |
|---|---|---|---|
| Salaries, wages and benefits | 1,083,439 | 990,659 | 9.4% |
| Aircraft maintenance, materials and repairs | 510,334 | 483,182 | 5.6% |
| Depreciation and amortization | 289,346 | 287,878 | 0.5% |
| Aircraft fuel | 65,216 | 62,573 | 4.2% |
| Total Operating Expenses | 2,319,540 | 2,207,079 | 5.1% |
Debt and Liquidity
As of September 30, 2024, SkyWest had outstanding debt of $2.7 billion, down from $3.1 billion a year earlier. The effective tax rate for the nine months ended September 30, 2024, was 24.4%.
SkyWest's liquidity position as of September 30, 2024, included $836.0 million in cash and cash equivalents and marketable securities, with $75.1 million available for borrowings under its line of credit.
Stock Performance
During the nine months ended September 30, 2024, SkyWest repurchased 0.5 million shares of common stock for $38.4 million at an average price of $72.30 per share. In comparison, during the same period in 2023, the company repurchased 9.6 million shares for $244.1 million at a weighted average price of $25.44.
How SkyWest, Inc. (SKYW) Makes Money
Revenue Streams
SkyWest, Inc. generates revenue primarily through two segments: the operations of SkyWest Airlines and SWC, and SkyWest Leasing activities.
- For the nine months ended September 30, 2024:
- Total operating revenues amounted to $2.58 billion, an increase of 18.3% from $2.18 billion in 2023.
- SkyWest Airlines and SWC generated $2.12 billion in revenue, up 18.8% from $1.78 billion in 2023.
- SkyWest Leasing contributed $466.5 million, a 16.0% increase from $402.2 million in 2023.
Capacity Purchase Agreements
The majority of SkyWest's revenue derives from capacity purchase agreements with major airline partners, which accounted for approximately 86.8% of total flying agreements revenue.
| Revenue Source | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Capacity Purchase Agreements Flight Operations | $1,763,629 | $1,479,987 | 19.2% |
| Capacity Purchase Agreements Aircraft Lease | $405,409 | $356,900 | 13.6% |
| Prorate Agreements and SWC Revenue | $330,915 | $269,243 | 22.9% |
| Total Flying Agreements Revenue | $2,499,953 | $2,106,130 | 18.7% |
Prorate Agreements
SkyWest also engages in prorate agreements, where it shares passenger fares with major airline partners. This segment saw significant growth, with prorate and SWC revenue increasing by 11.9% year-over-year for the three months ended September 30, 2024.
Operational Statistics
SkyWest's operational metrics for the nine months ended September 30, 2024, include:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Block Hours | 941,722 | 849,689 | 10.8% |
| Departures | 560,154 | 514,529 | 8.9% |
| Passengers Carried | 31,103,792 | 28,671,654 | 8.5% |
| Passenger Load Factor | 83.0% | 83.7% | (0.7) points |
Operating Expenses
SkyWest's operating expenses for the nine months ended September 30, 2024, included:
| Expense Type | 2024 Expense (in thousands) | 2023 Expense (in thousands) | Change (%) |
|---|---|---|---|
| Salaries, Wages, and Benefits | $1,083,439 | $990,659 | 9.4% |
| Aircraft Maintenance, Materials, and Repairs | $510,334 | $483,182 | 5.6% |
| Depreciation and Amortization | $289,346 | $287,878 | 0.5% |
| Aircraft Fuel | $65,216 | $62,573 | 4.2% |
Net Income
SkyWest reported a net income of $225.6 million, or $5.44 per diluted share, for the nine months ended September 30, 2024, compared to $16.8 million, or $0.37 per diluted share, in 2023.
Interest and Other Income
Interest income increased to $36.1 million for the nine months ended September 30, 2024, up 13.7% from $31.8 million in 2023. Other income decreased significantly, reflecting changes in fair value of investments.
SkyWest's comprehensive income for the three months ended September 30, 2024, was reported at $90.6 million, compared to $24.1 million for the same period in 2023.
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Article updated on 8 Nov 2024
Resources:
- SkyWest, Inc. (SKYW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SkyWest, Inc. (SKYW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SkyWest, Inc. (SKYW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.