SkyWest swings to $60 million profit in first quarter

SkyWest, an American regional airline that operates flights scheduled, marketed, and sold by its partner airlines, swung to a profit in the first quarter of the year with its net income at $60.3 million. In the same period last year, it had reported a net loss of $22 million. Its basic earnings per share for the quarter was $1.50 per share, up from its 45 cents loss per share in the first quarter 2023. Its total operating revenues for the first quarter was $803.6 million, up from $691.8 million in the same period. It ended the first quarter with a total debt of $2.9bn, down from $3bn at the end of 2023. It also ended the first quarter with $821 million in cash and marketable securities. Capital expenditures during the first quarter were $38 million, which were used for the purchase of spare engines and other fixed assets. SkyWest's operating expenses in the first quarter were up 1% at $704 million from $697 million in the first quarter of 2023. SkyWest repurchased 136,000 shares of common stock for $8.7 million during the first quarter at an average price per share of $64.21. At the end of the quarter, it had $82 million of remaining availability under its current share repurchase program. It anticipates 21 E175 deliveries from United Airlines and one from Delta Airlines for the remainder of the year, with 17 of the deliveries being partner-financed. It expects further eight E175 deliveries in both 2025 and 2026, with it scheduling to operate a total of 278 of the aircraft by the end of 2026. By the first quarter 2024 end, it operated 240 of the aircraft. SkyWest added that it is approximately 1,900 pilots below target, though TD Cowen analyst Helane Becker added that this is at least down from the approximate 2,000 pilots below target a year prior. Becker added that SkyWest's intention to refrain from a hiring or training slowdown will eventually be a ""tailwind to revenue and enable continued growth.""