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SkyWest Orders 16 New Embraer E175s Under Multi-Year Contract With Delta Air Lines

SkyWest has ordered 16 new Embraer E175s under a multi-year capacity purchase agreement with Delta Air Lines. The aircraft will be owned and financed by SkyWest and are expected to replace 16 CRJ900s, currently operating under the Delta contract.

SkyWest Embraer E175 Operating on Behalf of Delta Air Lines - Courtesy Embraer

On Monday (August 9, 2021), SkyWest announced the purchase of 16 new Embraer E175s which will be operated under a multi-year capacity purchase agreement with Delta Air Lines. The first aircraft is expected to be delivered in the second quarter of 2022 and the E175s will replace 16 CRJ900s currently operating under the Delta contract. SkyWest will own and finance the aircraft, reinforcing their position as the largest Embraer E175 owner/operator in the world. The company is currently evaluating the impact of the displaced CRJ900s, including a potential future non-cash impairment charge.

In Monday’s announcements (SkyWest and Embraer), SkyWest’s President and CEO, Chip Childs, said,

“We are pleased to continue to strengthen our Delta agreement with these new, dual-class aircraft. The E175 continues to serve our partners and passengers well as we help our partners work toward full domestic recovery. SkyWest operates more E175s than any other carrier in the world. With these aircraft, we will have nearly 240 E175s operating with airlines in North America. This month we are proud to reach two million flight hours in the E175. Our customers love the E175, and we have great confidence in and appreciate our partnership with Embraer.”

In a separate announcement from Embraer, Mark Neely, VP of Sales and Marketing – The Americas, Embraer Commercial Aviation, said,

“Our superb partnership with SkyWest continues with this new provision for Delta. The E175 is the backbone of the North American regional market, and as the industry begins to emerge from the pandemic, we are seeing growing long-term demand for rightsized aircraft to deliver profitable domestic connectivity. The E175 has been a lifeline for carriers as they are perfectly suited to rebuild routes, add frequencies, and add incremental capacity to meet rebounding domestic demand.”

St. George, Utah-based SkyWest, Inc. (NASDAQ: SKYW) is the holding company for SkyWest Airlines and SkyWest Leasing. The regional carrier usually operates up to 2,500 daily flights to more than 250 destinations throughout North America with a fleet of over 450 aircraft. Through partnerships with United Airlines, Delta Air Lines, American Airlines and Alaska Airlines, SkyWest carried 21 million passengers in 2020, down from 43 million passengers in 2019 due to the global COVID-19 pandemic.

Source(s): SkyWest, Embraer


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