SkyWest reported a net income of $48 million in Q3 of 2022, compared to $10 million in Q3 of 2021. Skywest reported a total revenue increase of 6% to close at $789 million. This quarter’s year-over-year increase in revenue under SkyWest’s flying contracts came from adding 33 E175 aircraft to its operations since Q3 2021 and eliminating the COVID-19 partner revenue concessions from Q3 last year.
Operating expenses were $714 million in Q3 2022, up 2% from $698 million in Q3 2021. The increase in operating expenses was primarily due to an increase in salaries, wages, and benefits, offset by a decrease in maintenance costs for Q3 2022 compared to Q3 2021.
Commenting on the results, Chip Childs, Chief Executive Officer of SkyWest, said: “We continue to experience strong demand for our product and our operational performance through the busy summer season was strong with 99.9% adjusted completion this quarter. We were pleased to have finalised new salary scales for our pilots during the quarter and continue efforts to stabilise our crew imbalance. I want to thank our people for their dedicated, world-class efforts.”
SkyWest reported $1.0 bn in cash and marketable securities on the quarter ending September 30, 2022, up from $975 million on June 30, 2022, and $860 million on December 31, 2021.
Total debt reported was $3.4 bn, up from $3.3 billion on June 30, 2022, reflecting the financing of nine new E175 aircraft delivered in Q3 2022. Capital expenditures was $224 million for the purchase of these nine E175s and other fixed assets.
SkyWest is coordinating with its major airline partners to optimise the timing of upcoming fleet deliveries under previously announced agreements.
SkyWest anticipates placing 47 E175 aircraft into service under previously announced agreements by late 2025. As of Q3, 39 aircraft were delivered and eight aircraft have deliveries scheduled through 2025. By the end of 2025, SkyWest is scheduled to operate a total of 240 E175 aircraft.