SkyWest Q1 Op Revenue Up, Net Flat

SkyWest, Inc. reported operating revenues of $789.0 million for the quarter ended March 31, 2007, a 6.2 percent increase, compared to $742.9 million for the same period last year. SkyWest also reported net income of $34.8 million for the quarter ended March 31, 2007, an increase of 0.6 percent, or $0.53 per diluted share compared to $34.6 million of net income or $0.57 per diluted share, for the same period last year. Performance was down this quarter costing the airline approximately $3.9 million (pretax) from its major partners for incentives under its capacity purchase agreements.
First Quarter Highlights include:
Total operating revenues increased primarily as a result of a 12.6 percent increase in available seat miles (ASMs) which was offset by a reduction in yield per revenue passenger mile of 3.5 percent and by a reduction in fuel cost reimbursements by SkyWest’s major partners that are recorded as operating revenues under contract flying arrangements. SkyWest increased its fleet size to 425 aircraft as of March 31, 2007, from 395 aircraft as of March 31, 2006.
Total operating expenses and interest per ASM for the first quarter of 2007, excluding fuel charges, of $218.1 million or $0.041 per ASM, increased approximately 1.0 percent to $0.099 from $0.098 for the same quarter of 2006. During the first quarter of 2007, SkyWest generated 5.29 billion ASMs, compared to 4.70 billion ASMs during the same period of 2006.
It incurred about $2.1 million (pretax) in startup costs, consisting primarily of pilot and flight attendant training costs, related to aircraft acquisitions. Certain of these costs were reimbursed by SkyWest’s major partners; however, the remainder of the startup costs are scheduled to be reimbursed as the additional aircraft are put into scheduled service.