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About Skywest, Inc.

SkyWest, Inc. is the holding company for SkyWest Airlines and SkyWest Leasing. SkyWest has destinations to about 220 cities in the US, Canada, Mexico, and the Caribbean, supporting approximately 2,300 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 2019, the company sold its ExpressJet subsidiary to United Airlines joint venture, ManaAir, for $70 million.

Operations

Before the sale of its ExpressJet subsidiary in early 2019, SkyWest operated through three reportable segments: SkyWest Airlines, ExpressJet, and SkyWest Leasing.

SkyWest Airlines (about 85% 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.

The SkyWestLeasing segment (over 15%) includes revenue generated from leasing its fleet of Embraer E175 dual-class regional jet aircraft (E175s) under fixed-fee contracts. ExpressJet (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.

Along with regional passenger transportation, which accounts for nearly all of its sales (97%), SkyWest provides ground handling services — loading and unloading of aircraft — for other airlines at several of the airports where it operates.

Geographic Reach

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.

Financial Performance

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. And by 2019, revenue declined again. Net income fluctuated for the same period.

In 2019, revenue decreased by 8% to $3 billion from $3.2 billion in 2018. The decrease was primarily due to the sale of ExpressJet and the corresponding decrease in revenue associated with ExpressJet flying contracts.

SkyWest's income for 2019 jumped 21% to $340.1 million, posting a profit of $59.7 million. The increase was due to gains from sale of ExpressJet.

Cash at the end of fiscal 2019 was $87.2 million, a significant decrease of $241.2 million from the prior year. Cash provided by operating activities was $721 million, while investing activities used $657 million, mainly for purchase of marketable securities and aircrafts and spare parts. Financing activities used another $305.2 million, primarily for payment of long-term debts.

Strategy

SkyWest is positioning itself for future growth by removing its older fleet of aircraft and are in the process of entering code-shared agreements with its major partner airlines. Code-share agreement are commercial agreements between airlines that, among other things, allow one airline to use another airline's flight designator codes on its flights. The Company success is principally centered on its ability to meet the needs of its major airline partners through providing a reliable and safe operation at attractive economics.

It also divested its profit-draining EpressJet business, allowing the company to focus on one operating entity.

SkyWest have entered into strategic engine joint venture with a third party to lease engines to other parties.

Company Background

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.

Skywest, Inc.

444 S River Rd
St George, UT 84790-2085
Phone: 1 (435) 634-3000

Firm Stats

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): 77
Employees (All Locations): 13,700

Major Office Locations

St George, UT

Other Locations

Mobile, AL
Tucson, AZ
Fresno, CA
Imperial, CA
Murrieta, CA
San Luis Obispo, CA
Colorado Springs, CO
Denver, CO
Durango, CO
Pueblo, CO
Albany, GA
Atlanta, GA
Brunswick, GA
Boise, ID
Hailey, ID
Idaho Falls, ID
Quincy, IL
Fort Wayne, IN
Lafayette, LA
Alpena, MI
Detroit, MI
International Falls, MN
Minneapolis, MN
Columbus, MS
Pearl, MS
Butte, MT
Newark, NJ
Elko, NV
Florence, SC
Louisville, TN
Memphis, TN
Nashville, TN
Houston, TX
Salt Lake City, UT
St George, UT
Roanoke, VA
Pasco, WA
Milwaukee, WI
Jackson, WY