SkyWest, Inc. Announces Fourth Quarter and Annual 2024 Profit

Rhea-AI Summary

SkyWest (NASDAQ: SKYW) reported strong financial results for Q4 2024, with net income of $97 million ($2.34 per diluted share), compared to $18 million ($0.42 per diluted share) in Q4 2023. Full-year 2024 net income reached $323 million ($7.77 per diluted share), up from $34 million ($0.77 per diluted share) in 2023.

Q4 2024 revenue increased 26% to $944 million, with block hour production up 20%. The company secured a multi-year contract extension with American Airlines for 74 CRJ700s and took delivery of four new E175 aircraft under a United Airlines agreement. By end of 2026, SkyWest is scheduled to operate 278 E175 aircraft.

As of December 31, 2024, SkyWest maintained $802 million in cash and marketable securities, with total debt at $2.7 billion. The company continued its share repurchase program, buying back 47,000 shares for $4.9 million during Q4 2024.

Positive

• Net income increased significantly to $97M in Q4 2024 (vs $18M in Q4 2023)
• Revenue grew 26% YoY to $944M in Q4 2024
• Block hour production increased 20% YoY in Q4 2024
• Secured multi-year contract extension with American Airlines for 74 CRJ700s
• Total debt reduced from $3.0B to $2.7B YoY

Negative

• Cash and marketable securities decreased to $802M from $835M YoY
• Cumulative deferred revenue of $322M remains on balance sheet

Insights

Financial Analyst

SkyWest's Q4 2024 financial results reveal a compelling transformation in operational efficiency and profitability. The 439% year-over-year increase in quarterly net income and 850% rise in annual profits demonstrate exceptional execution of their strategic initiatives.

Three key factors drive this performance:

• Enhanced operational efficiency, evidenced by the 20% increase in block hour production, indicating improved asset utilization and crew availability
• Strategic revenue management, with $20 million recognition of deferred revenue, compared to a $63 million deferral in Q4 2023, suggesting improved contract performance
• Disciplined cost control, with operating expenses growing only 10% despite 26% revenue growth, indicating expanding operating leverage

The company's capital allocation strategy balances growth investments, debt management and shareholder returns. The $186 million capital expenditure for fleet expansion, alongside share repurchases at an average price of $104.51, reflects confidence in future growth while maintaining financial flexibility. The $322 million deferred revenue balance provides a buffer of future earnings visibility.

The multi-year contract extension with American Airlines for 74 CRJ700s and the planned expansion to 278 E175 aircraft by 2026 establish a strong foundation for sustained growth. The predominantly debt-financed fleet expansion, with partner financing for 20 of 24 United Airlines aircraft deliveries, optimizes capital structure while maintaining strategic flexibility.

Fourth Quarter and Annual 2024 Summary

• Q4 2024 pre-tax income of $134 million, net income of $97 million, or $2.34 per diluted share
• Full year 2024 pre-tax income of $432 million, net income of $323 million, or $7.77 per diluted share
• SkyWest reached a multi-year contract extension with American Airlines that allows for a total of 74 CRJ700s under agreement
• SkyWest took delivery of four new E175 aircraft under a previously announced agreement with United

ST. GEORGE, Utah--(BUSINESS WIRE)-- SkyWest, Inc. (NASDAQ: SKYW) (“SkyWest”) today reported financial and operating results for Q4 2024, including net income of $97 million, or $2.34 per diluted share, compared to net income of $18 million, or $0.42 per diluted share, for Q4 2023. SkyWest also reported net income of $323 million, or $7.77 per diluted share, for the 2024 year, compared to net income of $34 million, or $0.77 per diluted share, for the 2023 year.

Commenting on the results, Chip Childs, Chief Executive Officer of SkyWest, said, “We are honored to be named one of the World’s Most Admired™ Companies for 2025 by Fortune Magazine and pleased that our operational momentum continues. We are continuing to make improvements in returning daily scheduled service to smaller communities, increasing the utilization and efficiency of all fleet types, and quickly placing new aircraft deliveries into service. I want to thank the SkyWest team for their exceptional teamwork as we continue to execute on these growth opportunities, including progress with expanding our CRJ550 and E175 fleets.”

Financial Results

Revenue was $944 million in Q4 2024, up $192 million, or 26%, from $752 million in Q4 2023. SkyWest’s block hour production increased 20% in Q4 2024 compared to Q4 2023, which reflects improvements in captain availability since Q4 2023.

For purposes of revenue comparability year-over-year, SkyWest recognized $20 million of previously deferred revenue under its flying contracts during Q4 2024, compared to deferring $63 million of revenue during Q4 2023. As of December 31, 2024, SkyWest had cumulative deferred revenue of $322 million under its flying contracts on its balance sheet.

Operating expenses were $800 million in Q4 2024, up $76 million, or 10%, from $724 million in Q4 2023, driven by the increase in flight production year-over-year.

Capital and Liquidity

SkyWest had $802 million in cash and marketable securities at December 31, 2024, down from $836 million at September 30, 2024 and down from $835 million at December 31, 2023.

Total debt at December 31, 2024 was $2.7 billion, flat from September 30, 2024 and down from $3.0 billion at December 31, 2023. Capital expenditures during Q4 2024 were $186 million for the purchase of four debt-financed E175 aircraft, spare engines and other fixed assets.

Under its previously announced share repurchase program authorized by the SkyWest Board of Directors in May 2023, SkyWest repurchased 47,000 shares of common stock for $4.9 million during Q4 2024 at an average price per share of $104.51. As of December 31, 2024, SkyWest had $48 million of remaining availability under its current share repurchase program.

Commercial Agreements

SkyWest is coordinating with its major airline partners to optimize the timing of upcoming announced fleet deliveries. The table below summarizes E175 aircraft deliveries SkyWest received during 2024 and anticipated future deliveries during the periods indicated based on currently available information, which is subject to change.

		Completed		Anticipated
		2024		2025		2026		Total
Delta Air Lines		1		ꟷ		ꟷ		1
United Airlines		24(1)		7		8		39
Alaska Airlines		ꟷ		1		ꟷ		1
Total		25		8		8		41
(1) 20 of the 24 E175 deliveries completed in 2024 for United Airlines were partner-financed aircraft.

By the end of 2026, SkyWest is scheduled to operate a total of 278 E175 aircraft.

About SkyWest

SkyWest, Inc. is the holding company for SkyWest Airlines, SkyWest Charter (“SWC”) and SkyWest Leasing, an aircraft leasing company. SkyWest Airlines has a fleet of approximately 500 aircraft connecting passengers to over 240 destinations throughout North America. SkyWest Airlines operates through partnerships with United Airlines, Delta Air Lines, American Airlines, and Alaska Airlines carrying more than 42 million passengers in 2024.

SkyWest will host its conference call to discuss its fourth quarter 2024 results today, January 30, 2025, at 2:30 p.m. Mountain Time. The conference call number is 1-888-330-2455 for domestic callers, and 1-240-789-2717 for international callers. Please call up to ten minutes in advance to ensure you are connected prior to the start of the call. The conference call will also be available live on the Internet at https://events.q4inc.com/attendee/312398142. This press release and additional information regarding SkyWest, including access information for the digital rebroadcast of the fourth quarter 2024 results call, participation at investor conferences and investor presentations can be accessed at inc.skywest.com.

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 continued demand for our product, the effect of economic conditions on SkyWest’s business, financial condition and results of operations, the scheduled aircraft deliveries, fleet expansion and anticipated fleet size for SkyWest in upcoming periods, expected production levels in future periods and associated staffing challenges, pilot attrition trends, SkyWest’s coordination with major airline partners to optimize the delivery of aircraft under previously announced agreements and quickly placing new aircraft deliveries into service, the expected terms, timing and benefits related to SkyWest’s leasing, strategic partnership and joint venture transactions, scheduled flight service to smaller communities, increasing the utilization and efficiency of all fleet types 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: 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 inflationary pressures, and related decreases in customer demand and spending; uncertainty regarding potential future outbreaks of infectious diseases or other health concerns, and the consequences of such outbreaks to the travel industry, including travel demand and travel behavior, and our major airline 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; uncertainty regarding timing and performance of key third-party service providers; ongoing negotiations between SkyWest and its major airline partners regarding their contractual obligations; uncertainties regarding operation of new aircraft; the ability to attract and retain qualified pilots, including captains, and related staffing challenges; the impact of regulatory issues such as pilot rest rules and qualification requirements; the ability to obtain aircraft financing; the financial stability of SkyWest’s major airline partners and any potential impact of their financial condition on the operations of SkyWest; fluctuations in flight schedules, which are determined by the major airline 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, natural disasters and other air safety incidents on air travel and airline costs; aircraft deliveries; uncertainty regarding ongoing hostility between Russia and the Ukraine, as well as Israel and Hamas, and the related impacts on macroeconomic conditions and on the international operations of any of our major airline partners as a result of such conflict; 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.

SkyWest, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Dollars and Shares in Thousands, Except per Share Amounts) (Unaudited)
		Three Months Ended								Year Ended
		December 31,								December 31,
		2024				2023				2024				2023
OPERATING REVENUES:
Flying agreements		$	912,845			$	728,267			$	3,412,798			$	2,834,397
Lease, airport services and other			31,557				23,520				115,122				101,035
Total operating revenues			944,402				751,787				3,527,920				2,935,432
OPERATING EXPENSES:
Salaries, wages and benefits			380,493				331,956				1,463,932				1,322,615
Aircraft maintenance, materials and repairs			202,308				190,271				712,642				673,453
Depreciation and amortization			94,534				95,237				383,880				383,115
Aircraft fuel			22,193				23,340				87,409				85,913
Airport-related expenses			24,771				18,992				85,836				72,640
Aircraft rentals			1,332				1,452				5,257				25,507
Other operating expenses			74,695				62,917				294,307				268,120
Total operating expenses			800,326				724,165				3,033,263				2,831,363
OPERATING INCOME			144,076				27,622				494,657				104,069
OTHER INCOME (EXPENSE):
Interest income			11,835				12,167				47,961				43,928
Interest expense			(27,737	)			(31,049	)			(114,340	)			(130,930	)
Other income, net			5,432				15,698				3,865				23,242
Total other expense, net			(10,470	)			(3,184	)			(62,514	)			(63,760	)
INCOME BEFORE INCOME TAXES			133,606				24,438				432,143				40,309
PROVISION FOR INCOME TAXES			36,229				6,922				109,181				5,967
NET INCOME		$	97,377			$	17,516			$	322,962			$	34,342
BASIC EARNINGS PER SHARE		$	2.42			$	0.43			$	8.02			$	0.78
DILUTED EARNINGS PER SHARE		$	2.34			$	0.42			$	7.77			$	0.77
Weighted average common shares:
Basic			40,317				40,706				40,262				43,940
Diluted			41,702				41,776				41,547				44,599

SkyWest, Inc. and Subsidiaries Summary of Consolidated Balance Sheets (Dollars in Thousands) (Unaudited)
	December 31,			December 31,
	2024			2023
Cash and marketable securities	$	801,628		$	835,223
Other current assets		315,439			296,673
Total current assets		1,117,067			1,131,896
Property and equipment, net		5,521,796			5,405,685
Deposits on aircraft		65,612			77,282
Other long-term assets		435,392			411,430
Total assets	$	7,139,867		$	7,026,293
Current portion, long-term debt	$	535,589		$	443,869
Other current liabilities		894,002			810,423
Total current liabilities		1,429,591			1,254,292
Long-term debt, net of current maturities		2,136,786			2,562,183
Other long-term liabilities		1,164,709			1,096,316
Stockholders' equity		2,408,781			2,113,502
Total liabilities and stockholders' equity	$	7,139,867		$	7,026,293

SkyWest, Inc. and Subsidiaries Additional Operational Information (unaudited)
SkyWest’s fleet in scheduled service or under contract by aircraft type:
		December 31, 2024		September 30, 2024		December 31, 2023
E175 aircraft		262		258		237
CRJ900 aircraft		36		36		41
CRJ700 aircraft (1)		119		109		118
CRJ200 aircraft		75		81		89
Total aircraft in service or under contract		492		484		485
________________ (1) Includes CRJ550 aircraft, a 50-seat configuration of the CRJ700 aircraft.

As of December 31, 2024, SkyWest leased 35 CRJ700/CRJ550s and five CRJ900s to third parties and had 18 CRJ200s that are configured for service under SWC operations (these aircraft are excluded from the table above).

Selected operational data:
		For the three months ended December 31,										For the year ended December 31,
Block hours by aircraft type:		2024			2023			% Change				2024			2023			% Change
E175s		211,519			177,104			19.4		%		792,318			677,886			16.9		%
CRJ900s		23,711			17,198			37.9		%		84,883			76,588			10.8		%
CRJ700s		68,506			59,820			14.5		%		244,909			218,059			12.3		%
CRJ200s		46,582			36,632			27.2		%		169,930			167,910			1.2		%
Total block hours		350,318			290,754			20.5		%		1,292,040			1,140,443			13.3		%
Departures		206,588			177,433			16.4		%		766,742			691,962			10.8		%
Passengers carried		11,231,510			9,925,655			13.2		%		42,335,302			38,597,309			9.7		%
Adjusted flight completion		99.9	%		99.9	%		—		pts		99.9	%		99.9	%		—		pts
Raw flight completion		99.0	%		99.5	%		(0.5	)	pts		98.9	%		98.8	%		0.1		pts
Passenger load factor		82.2	%		83.4	%		(1.2	)	pts		82.8	%		83.6	%		(0.8	)	pts
Average trip length		443			445			(0.4	)	%		464			453			2.4		%
Adjusted flight completion percent excludes weather cancellations. Raw flight completion includes weather cancellations.

 

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Investor Relations

435.634.3200

Investor.relations@skywest.com

Corporate Communications

435.634.3553

corporate.communications@skywest.com

Source: SkyWest, Inc.

FAQ

What was SkyWest's (SKYW) net income for Q4 2024?

SkyWest reported net income of $97 million ($2.34 per diluted share) for Q4 2024.

How many E175 aircraft will SkyWest operate by the end of 2026?

SkyWest is scheduled to operate a total of 278 E175 aircraft by the end of 2026.

How much did SKYW's revenue increase in Q4 2024 compared to Q4 2023?

SkyWest's revenue increased by 26% ($192 million) to $944 million in Q4 2024 compared to $752 million in Q4 2023.

What was the value of SKYW's share repurchases in Q4 2024?

SkyWest repurchased 47,000 shares for $4.9 million during Q4 2024 at an average price of $104.51 per share.

How many new E175 aircraft did SKYW receive in 2024?

SkyWest received 25 E175 aircraft deliveries in 2024, with 24 for United Airlines and 1 for Delta Air Lines.