SkyWest (SKYW) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income reached $90 million ($2.16 per diluted share), up from $23 million ($0.55 per share) in Q3 2023, with operating revenues rising 19% year-over-year to $913 million, driven by higher block hours, improved pilot staffing, and recognition as a top mid-sized company.

• Block hours increased 15% and departures rose 11.8% year-over-year, supported by more available captains and higher aircraft utilization.

• Announced a multi-year agreement with United to place 40 CRJ-550s, including conversions and acquisitions, and continued E175 fleet expansion, targeting 278 aircraft by end of 2026.

• Nine E175 partner-financed aircraft delivered under a United agreement, supporting ongoing fleet growth.

• Recognized $19 million of previously deferred revenue in Q3 2024.

Financial highlights

• Q3 2024 revenue was $913 million, up 19% year-over-year; contract revenue rose 20% year-over-year.

• Operating income for Q3 2024 was $131 million, up from $49 million in Q3 2023; operating expenses increased 9% to $781 million.

• Cash and marketable securities totaled $836 million as of September 30, 2024; total debt decreased to $2.7 billion from $3.0 billion at year-end 2023.

• Repurchased 217,000 shares for $16.3 million in Q3; since 2023, 11.1 million shares (22% of outstanding) repurchased for $327 million.

• For the nine months ended September 30, 2024, net income was $225.6 million, up from $16.8 million in the prior year period.

Outlook and guidance

• Scheduled to operate 278 E175 aircraft by end of 2026, with ongoing deliveries for Delta, United, and Alaska Airlines.

• 2024 block hours expected to be up 13% over 2023, with 2025 block hours projected to rise 10% over 2024.

• 2024 GAAP EPS expected in the low $7 range, with 2025 GAAP EPS in the mid-$8 range, both above pre-COVID levels.

• 2024 CapEx forecasted at $320–$350 million; 2025 CapEx expected to rise to ~$500 million, mainly for new E175s and CRJ-550 conversions.

• Sufficient liquidity is expected to meet financial requirements for at least the next 12 months.