SkyWest (SKYW) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $76 million ($1.82 per diluted share), up from $15 million in Q2 2023, with pre-tax income of $102 million and strong operational execution.

• Revenue reached $867 million, up 19% year-over-year, driven by a 12% increase in block hours and improved captain availability.

• Achieved 99.99% adjusted completion on nearly 15,000 more flights year-over-year, despite industry-wide IT disruptions.

• Fleet at June 30, 2024: 608 total aircraft, with 475 in scheduled service or under contract; focus on E175 fleet expansion.

• Continued strong demand for regional lift, especially in small and underserved markets, with optimism for 2024 and 2025.

Financial highlights

• Q2 2024 revenue was $867 million (+19% YoY); net income $76 million ($1.82/share); operating income $120 million.

• Operating expenses for Q2 2024 were $747 million (+8% YoY), mainly due to higher labor and maintenance costs.

• Cash and marketable securities at June 30, 2024: $834 million; total long-term debt: $2.8 billion, down from $3 billion at year-end 2023.

• Repurchased 177,000 shares in Q2 for $13 million; $69 million remains under current authorization.

• CapEx for Q2 was $19 million; full-year 2024 CapEx expected at $300–$350 million.

Outlook and guidance

• 2024 block hours expected to be up 9%-11% over 2023, driven by improved pilot availability and fleet utilization.

• 2024 GAAP EPS anticipated in the high $6 range, slightly above prior guidance and pre-COVID levels.

• Maintenance expense to increase by $40 million in H2 2024 and average $200 million per quarter in 2025 as aircraft return to service.

• Scheduled to operate 278 E175 aircraft by end of 2026, with 41 additional E175 deliveries expected through 2026.

• 2024 income tax rate expected between 25%-27%.