SKYW Net Drops $17M, Still Doing Well

Net income for SkyWest dropped from $42.9 million to $26.2 million during the third quarter on an increase in operating revenues from $875.6 million to $934.1. Net income for the nine months reached $91.7 million or $1.55 per diluted share, for the nine months ended September 30, 2008, compared to $118.3 million of net income, or $1.83 per diluted share for the same period last year.
Total operating revenues for the third quarter of 2008 increased primarily as a result of increased fuel cost reimbursements by SkyWest’s major partners that are recorded as operating revenues under contract flying arrangements. The impact of those reimbursements was partially offset by changes in the flight schedules by our major partners resulting in block hour reductions of 7.6 percent, compared to the third quarter of 2007. Block hours produced were 348,522 hours for the quarter ended September 30, 2008 compared to 376,999 hours for the same period last year.