About Skywest, Inc.
SkyWest, Inc. is the holding company for SkyWest Airlines and SkyWest Leasing. SkyWest has destinations to about 260 cities in the US, Canada, Mexico, and the Caribbean, supporting approximately 2,500 daily departures. Combined, SkyWest's carriers operate a fleet of over 480 aircraft consisting of Canadair regional jets (CRJs, made by Bombardier) and Embraer aircraft. SkyWest also operates through code-sharing agreements with United Airlines (operating as United Express), Delta Air Lines (Delta Connection), American Airlines (American Eagle), and Alaska Airlines. (Code-sharing allows airlines to sell tickets on one another's flights.) In 2018, Wallethub ranked SkyWest Airlines the third-best overall US airline, behind Alaska Airlines and Delta. In 2019, the company sold its ExpressJet subsidiary to United Airlines joint venture, ManaAir, for $70 million.
Before the sale of its ExpressJet subsidiary in early 2019, SkyWest operated through three reportable segments: SkyWest Airlines, ExpressJet, and SkyWest Leasing.
SkyWest Airlines (nearly 75% of net sales) provides regional jet service to airports throughout the US, as well as Mexico and Canada. It offers flights under United Express, Delta Connection, American Eagle, and Alaska Airlines monikers.
ExpressJet (over 15%) provides regional jet service to airports primarily located in the Eastern and Midwestern US, as well as Mexico, Canada, and the Caribbean. ExpressJet’s operations are conducted principally from airports located in Atlanta, Chicago (O’Hare), Houston, Newark, and New York.
The SkyWestLeasing segment (about 10%) includes revenue generated from leasing its fleet of Embraer E175 dual-class regional jet aircraft (E175s) under fixed-fee contracts. It also includes income from leasing its CRJ200 aircraft to a third-party.
Along with regional passenger transportation, which accounts for nearly all of its sales (98%), SkyWest provides ground handling services — loading and unloading of aircraft — for other airlines at several of the airports where it operates.
Based in St. George, Utah, SkyWest operates over a dozen facilities across the US, which usually consist of an aircraft maintenance hangar and an office facility.
Sales and Marketing
About 85% of SkyWest's flying agreement revenue is related to contract (also referred to as "fixed-fee") flights where Delta, United, Alaska, and American control scheduling, ticketing, pricing, and seat inventories. The remainder is generated from "prorate" (or revenue-sharing) flights for Delta, United, and American.
SkyWest's balance sheet has experienced turbulence over the last several years. After two consecutive years of decline in 2015 and 2016, the company's revenue marginally increased by low single digits in 2017 and 2018. Overall, revenue has remained flat since 2014.
Sales in 2018 reached $3.2 billion, a 3% increase over $3.1 billion in 2017, but still below past sales levels. Block hours (time between doors closing at departure and doors opening at arrival) and the number of departures and passengers carried were down due to the company's fleet transition (aircraft removed and added) during 2018.
Net income has fared better having recovered from recent losses. Skywest posted profits of $280.4 million in 2018. This was down 35% from the previous year, but only as a result of a tax benefit in 2017 due to the Tax Cuts and Jobs Act.
Cash at the end of fiscal 2018 was $328.4 million, an increase of $146.6 million from the prior year. Cash from operations contributed $802.5 million to the coffers, while investing activities used $983.4 million, mainly for aircraft and parts. Financing activities provided $327.5 million primarily from borrowings.
SkyWest is positioning itself for future growth by transitioning its fleet of aircraft to newer models and entering into new contract and lease agreements with its partner airlines. It also divested its profit-draining EpressJet business, allowing the company to focus on one operating entity.
The carrier is in the midst of a fleet transition, removing older aircraft and replacing them with newer Embraer 175s (E175s) designed for short to mid-range flights and additional Canadair CRJ900 regional jet aircraft. SkyWest is planning to place three new E175s in operation with Alaska Airlines and nine with Delta through 2021. It also contracted with Delta to operate 20 new CRJ900s (to replace the older CRJ700s) by 2020.
SkyWest is also making technology investments to increase efficiency, launching the world's first all-electronic maintenance log in 2018. SkyWest is the first commercial airline in the US to equip each of its aircraft with the new FAA-approved eAML Electronic Maintenance Log.
In 1972 Ralph Atkin founded SkyWest with one airplane that served three points in Utah. The company doubled in size in 1984 when it bought California-based Sun Aire Lines; two years later it went public. Growth also was fueled by the trend toward code-sharing agreements between major airlines and regional airlines serving rural markets. SkyWest jumped on board with Delta in 1987 to become one of four Delta Connection carriers.
444 S RIVER RD
St George, UT 84790-2085
Phone: 1 (435) 634-3000
Employer Type: Publicly Owned
Stock Symbol: SKYW
Stock Exchange: , NASDAQ
Chairman: Jerry C. Atkin
President and CEO: Russell A. Childs
CFO: Robert J. Simmons
Employees (This Location): 107
Employees (All Locations): 15,900
St George, UT
San Luis Obispo, CA
Colorado Springs, CO
Idaho Falls, ID
Fort Wayne, IN
International Falls, MN
Salt Lake City, UT
St George, UT