SkyWest Announces Second Quarter Net Loss of $26 Million or $0.51 per Share
SkyWest announced on Thursday a second quarter net loss of 26 million and a pre-tax loss of $31 million or $(0.51) per share. During the quarter, the carrier took delivery of 21 used Embraer E175s under a previously announced agreement with United Airlines.
On Thursday (July 30, 2020), regional carrier SkyWest, Inc. (NASDAQ: SKYW) announced their second quarter financial results with a net loss of $26 million and pre-tax loss of $31 million or $(0.51)/share. In the same period last year, the carrier reported a net income of $88 million or $1.71 per diluted share. In the second quarter, SkyWest took delivery of 21 used Embraer E175s under an agreement with United Airlines as well as two new and three used E175s under an agreement with Delta Air Lines. Like all airlines, the carrier’s second quarter result reflects reduced flight schedules as a result of the global COVID-19 pandemic. In Thursday’s announcement, SkyWest’s Chief Executive Officer, Chip Childs said,
“COVID-19 continues to cause unprecedented disruption across the airline industry. The safety and well-being of our people and passengers remains our main focus. Maintaining strong liquidity and working collaboratively with our partners are our other priorities. I want to thank our 14,000 employees for their dedication to our passengers, each other and our mission during this pandemic.”
The carrier’s second quarter revenue declined to $350 million compared to $744 million in Q2 2019, while total block hours under the company’s contracts declined year-over-year by 66 percent. During the quarter, the carrier’s expenses declined to $354 million compared to $600 million in the second quarter of 2019. The company also received $307 million out of $438 million under the U.S. Cares Act Payroll Support Program (PSP) which, when fully distributed, will include a $337 million grant and $101 million in unsecured debt. Second quarter CAPEX included $43 million for the acquisition of two new E175s that were financed through debt and $50 million in deposits for spare engines and other maintenance assets. As of June 30, 2020, SkyWest had $762 million in cash and marketable securities, a $75 million line of credit facility with $66 million available and $3 billion in total debt.
St. George, Utah-based SkyWest usually operates up to 2,500 daily flights to more than 250 destinations with a fleet of nearly 500 aircraft. Through partnerships with United Airlines, Delta Air Lines, American Airlines and Alaska Airlines, SkyWest carries around 43 million passengers annually. The regional carrier employs over 14,000 team members and services cities throughout North America. In after-hours trading Friday evening, shares in SkyWest, Inc. (NASDAQ: SKYW) were trading 7.33% lower at $26.31/share (July 31, 2020 - 7:43 PM EDT).