US regional airline SkyWest has posted a net income of $60 million in its first quarter 2024 results, compared to a net loss of $22 million for first quarter 2023.
“Our ability to meet our partners’ demand for additional production continues to increase as our captain availability has improved,"" said SkyWest CEO Chip Childs. ""We are also pleased with how our teams performed under challenging winter conditions during the first quarter.""
SkyWest, which operates and maintains aircraft for flights that are contracted by its partner airlines, reported its revenues totalled $804 million, marking a 16% increase from $692 million in the first financial period of last year. Operating expenses increased marginally to $704 million from $697 million year-on-year (YoY), primarily driven by a 5% increase in block hour production YoY, offset by lower aircraft rent expenses from early lease buyouts SkyWest executed during 2023.
SkyWest had $821 million in cash and marketable securities as of March 31, 2024, down from $835 million as of December 31, 2023. Total debt as of March 31, 2024, was $2.9bn, down from $3bn by the end of 2023. Capital expenditures during Q1 2024 were $38 million for the purchase of spare engines and other fixed assets.
TD Cowen analysts said: ""SkyWest has emerged from the pandemic as the strongest US regional airline. Pilot staffing keeps improving, unlocking much better asset utilisation and revenue production.
""Long-term margin tailwinds include operating leverage and the increasing number of E175s that will be fully paid off starting in 2026.""
The regional airline is scheduled to operate a total of 278 E175 aircraft by the end of 2026 as it awaits deliveries.
SkyWest partners with American, Alaska, Delta, and United.
SkyWest's profits swing to positive in first quarter 2024
