Calyon Reduces SkyWest Rating

Calyon Securities Analyst Ray Niedl reported this morning that his company is reducing its SkyWest rating from Buy to Neutral as well as reducing its target price from $30 to $28. Niedl said this is in line with ratings for other regional airlines citing additional training costs. “Most are experiencing extra training costs as pilot turnover accelerates,” he said this morning. “In some cases, they are not meeting their schedules, resulting in penalties. In addition, growth opportunities seem to be more limited for most of the regionals as their margins, which were once guaranteed in their contracts, get squeezed as their network airline partners try to cut costs.” For a complete analysis see the next issue of Regional Aviation News.