SkyWest has repprted net income of $4 million, or $0.09 per diluted share, for the fourth quarter of 2021, compared to a net loss of $46 million, or $0.93 loss per share, for the prior-year quarter. SkyWest also reported net income of $112 million, or $2.20 per diluted share, for the 2021 year, compared to a net loss of $9 million, or $0.17 loss per share, for 2020. Adjusted net income in 2021 was $176 million, or $3.46 per diluted share. SkyWest’s financial results improved from 2020 due to the flying demand recovery from COVID-19.
Commenting on the results, Chip Childs, Chief Executive Officer of SkyWest, said, “We continued to see very strong demand for our product during the fourth quarter. While we are facing new headwinds as the industry prepares to operate in a post-pandemic environment and we work to rebalance staffing, we remain focused on delivering an exceptional product.”
Revenue was $777 million in Q4 2021, up from $590 million in Q4 2020, or 32%, as SkyWest’s Q4 2021 block hours on completed flights were up 30% from Q4 2020.
SkyWest recognized $23 million of previously deferred revenue of fixed monthly payments in Q4 2021, whereas SkyWest deferred recognizing revenue on $12 million of fixed monthly payments in Q4 2020. SkyWest will recognize the remaining $104 million of deferred revenue from the fixed monthly payments on a completed block hour basis over the term of the remaining contracts.
Operating expenses were $744 million in Q4 2021, up from $617 million in Q4 2020, or 21%. The increase in operating expenses was primarily due to an increase in flights operated in Q4 2021 compared to the same period in 2020.
SkyWest had $860 million in cash and marketable securities at December 31, 2021, up from $826 million at December 31, 2020. Total debt at December 31, 2021 was $3.1 billion, down from $3.2 billion at December 31, 2020. Capital expenditures during Q4 2021 were $304 million for the purchase of twelve new E175 aircraft, four used CRJ700 aircraft and spare engines and $18 million for other fixed assets.