In a preview of its November 5 third quarter conference call, SkyWest, Inc. said it expects financial results for the third quarter ended September 30 to be lower than it previously anticipated. The company cited the reduction in Midwest Connect flying and a Delta imposed reduction in block hours at both SkyWest and Atlantic Southeast airlines, for predicting that consolidated net income will be between $24.2 million and $26.5 million, with earnings per diluted share estimated to be between $.42 and $.46 when actual results are announced.
The financial difficulties at Midwest forced the reduction of aircraft from 21 to 12, reducing profitability, while SkyWest continues to incur the ownership costs related to the nine aircraft eliminated from its Midwest operations. The financial impact of block hour reductions in its Delta Connection programs was larger than SkyWest originally anticipated. SkyWest will provide a detailed review and analysis of its third quarter results during a Wednesday, November 5 conference call scheduled the same day.