SkyWest Announces New Flying Agreement for 8 Additional E175 Aircraft with Alaska Airlines
SkyWest, Inc. (NASDAQ: SKYW) has entered into a 12-year capacity purchase agreement with Alaska Airlines to acquire and operate eight new E175 aircraft. This deal will increase SkyWest's fleet under its Alaska partnership to 40 aircraft by mid-2022. SkyWest, recognized as the largest owner/operator of the E175 globally, aims to enhance its operational capacity amidst recovery from the pandemic. CEO Chip Childs emphasized the aircraft's significance in maintaining essential services during challenging times.
- SkyWest secures a 12-year agreement with Alaska Airlines, enhancing fleet stability.
- Acquisition of eight new E175 aircraft expands operational capacity.
- Strengthening of partnership with Alaska Airlines after 10 years.
- Reliance on the aviation industry recovery which is uncertain due to COVID-19.
- Potential operational challenges with new aircraft integration.
- Ongoing regulatory issues related to pilot qualifications and rest requirements.
SkyWest, Inc. (NASDAQ: SKYW) (“SkyWest”) today announced an agreement with Alaska Airlines (“Alaska”) to purchase and operate eight E175 aircraft under a 12-year capacity purchase agreement. These aircraft are scheduled to be placed into service beginning in the first half of 2022, bringing SkyWest’s total fleet operating under its Alaska agreement to 40 once complete. The aircraft will be purchased by SkyWest from Embraer and delivered new from the factory. SkyWest continues to be the largest owner/operator of the Embraer E175 aircraft in the world.
Commenting on the agreement, Chip Childs, President and CEO of SkyWest, said, “The E175 is a great aircraft for customers and has helped provide vital service throughout the pandemic. As we mark 10 years of partnership with Alaska Airlines, we are pleased to add these new E175s as we help lead the recovery and continue strengthening our Alaska partnership.”
About SkyWest
SkyWest, Inc. is the holding company for SkyWest Airlines and SkyWest Leasing, an aircraft leasing company. SkyWest Airlines has a fleet of over 450 aircraft connecting passengers to over 230 destinations throughout North America. SkyWest Airlines operates through partnerships with United Airlines, Delta Air Lines, American Airlines and Alaska Airlines carrying more than 21 million passengers in 2020 and 43 million passengers in 2019.
Forward-Looking Statements
In addition to historical information, this release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “forecasts,” "expects," "intends," "believes," "anticipates," “estimates,” "should," "likely" and similar expressions identify forward-looking statements. Such statements include, but are not limited to, statements about the expected timing of delivery of new aircraft under, and other benefits of, the new flying agreement with Alaska, as well as SkyWest’s future financial and operating results, plans, objectives, expectations, estimates, intentions and outlook, and other statements that are not historical facts. All forward-looking statements included in this release are made as of the date hereof and are based on information available to SkyWest as of such date. SkyWest assumes no obligation to update any forward-looking statements unless required by law. Readers should note that many factors could affect the future operating and financial results of SkyWest and could cause actual results to vary materially from those expressed in forward-looking statements set forth in this release. These factors include, but are not limited to, uncertainties regarding the uncertainty of the duration, scope and impact of COVID-19, a further spread or worsening of COVID-19, the consequences of the COVID-19 outbreak to economic conditions, the travel industry and our major partners in general and the financial condition and operating results of SkyWest in particular, the prospects of entering into agreements with existing or other carriers to fly new aircraft, ongoing negotiations between SkyWest and its major partners regarding their contractual obligations, uncertainties regarding operation of new aircraft, the ability to attract and retain qualified pilots, the impact of regulatory issues such as pilot rest rules and qualification requirements, and the ability to obtain aircraft financing.
Actual operational and financial results of SkyWest will likely also vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of other reasons, including, in addition to those identified above: the existing global COVID-19 pandemic and the outbreak of any other disease or similar public health threat that affects travel demand or travel behavior; the challenges of competing successfully in a highly competitive and rapidly changing industry; developments associated with fluctuations in the economy and the demand for air travel, including related to the duration and impact of the COVID-19 pandemic, and related decreases in customer demand and spending; the financial stability of SkyWest’s major partners and any potential impact of their financial condition on the operations of SkyWest; fluctuations in flight schedules, which are determined by the major partners for whom SkyWest conducts flight operations; variations in market and economic conditions; significant aircraft lease and debt commitments; estimated useful life of long-lived assets, residual aircraft values and related impairment charges; labor relations and costs; the impact of global instability; rapidly fluctuating fuel costs, and potential fuel shortages; the impact of weather-related or other natural disasters on air travel and airline costs; aircraft deliveries; and other unanticipated factors. Risk factors, cautionary statements and other conditions which could cause SkyWest’s actual results to differ materially from management’s current expectations are contained in SkyWest’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Additionally, the risks, uncertainties and other factors set forth above or otherwise referred to in the reports that the Company files with the Securities and Exchange Commission may be further amplified by the global impact of the COVID-19 pandemic.
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