SkyWest (SKYW) Q4 2024 earnings summary

Executive summary

• Achieved Q4 2024 net income of $97 million ($2.34 per diluted share), up from $18 million in Q4 2023, and full year net income of $323 million ($7.77 per diluted share), compared to $34 million in 2023.

• Completed nearly 30,000 more flights in Q4 2024 than the prior year, with 99.9% adjusted completion.

• Extended multi-year flying agreements with American, United, and Delta, securing long-term contracts for nearly all CRJ700s and expanding CRJ550 and E175 fleets.

• Block hour production expected to increase 12% in 2025, approaching pre-COVID utilization levels.

Financial highlights

• Q4 2024 revenue was $944 million, up 26% year-over-year and 3% sequentially; block hour production increased 20%.

• Q4 2024 operating income was $144 million, up from $28 million in Q4 2023; full year operating income was $495 million, up from $104 million in 2023.

• Contract revenue in Q4 was $786 million, up 27% year-over-year; prorate and charter revenue was $126 million, up 14%.

• Recognized $20 million of previously deferred revenue in Q4; $322 million in cumulative deferred revenue remains.

• Ended Q4 with $802 million in cash and $2.7 billion in debt, down from $3 billion at year-end 2023.

Outlook and guidance

• 2025 block hours expected to rise 12% over 2024, driven by improved fleet utilization and strong demand.

• 2025 CapEx projected at $600 million, including eight new E175s and support for CRJ550 opportunities.

• 2025 GAAP EPS could reach $9 per share if growth opportunities are realized.

• Maintenance expense expected to average $200 million per quarter in 2025 as more aircraft return to service.