SkyWest reported a third quarter 2023 pre-tax income of $24 million, with net income of $23 million, or $0.55 per diluted share. Revenue was $766 million in Q3 2023, down $23 million, or 3%, from $789 million in Q3 2022. Operating expenses were $717 million in Q3 2023, up $3 million from $714 million in Q3 2022, driven by increases in employee compensation, including higher pilot pay scales
SkyWest has secured an agreement with United Airlines to place 19 new E175 aircraft under contract, with deliveries scheduled from late 2024 through 2026. The E175 aircraft will fly exclusively with United under a Capacity Purchase Agreement (CPA).
During the quarter, SkyWest also repurchased 1.2 million shares of common stock for $50 million at an average price of $42 per share. For the nine months ended September 30, 2023, SkyWest repurchased 9.6 million shares of common stock for $244 million, which represented 19% of SkyWest’s outstanding shares as of December 31, 2022. As of September 30, 2023, SkyWest had $136 million of remaining availability under its current share repurchase program.
Commenting on the results, Chip Childs, Chief Executive Officer of SkyWest, said” “We are pleased with the improving trajectory of our business, strong demand for our product, and steady progress toward stabilization of our pilot hiring and retention. I want to thank our amazing team for delivering outstanding operations in the third quarter.”
SkyWest had $820 million in cash and marketable securities at September 30, 2023.
Total debt at September 30, 2023 was $3.1bn, down from $3.2bn at June 30, 2023 and $3.4bn at December 31, 2022. Capital expenditures during Q3 2023 were $32 million, including $15 million capitalized for three CRJ aircraft acquired under an early lease buyout and purchases of other fixed assets. Additionally, SkyWest paid $36 million in aircraft deposits related to its order for 19 new E175 aircraft during Q3 2023.
By the end of 2026, SkyWest is scheduled to operate a total of 258 E175 aircraft.