Posted on: 07 August 2014 by Mark Howells
For the second quarter of its financial year, which ended on 30 June, SkyWest Inc announced a net loss of $14.7 million compared with a net income of $20.7 million for the same period in 2013.
The company noted that one reason for the negative result was the start-up cost associated with introducing the Embraer 175 into the fleet. It hopes the economic benefit from this move will be visible by the second quarter of 2015. Furthermore, throughout the rest of the year and into 2015 SkyWest Inc projects it will see the expiration of leases on over 150 of its 50-seat aircraft which will thereafter be removed from service, saving a large amount in operating costs.
SkyWest Inc’s operating revenues are down $22.5 million from 2013 due to missed contract performance incentives and unfavourable flying contract settlements. Additonally, pilot training and related costs were incurred to comply with the FAR117 flight and duty rules, or ‘rest rules’.
"Although we recovered somewhat from the severe weather and related impact we suffered during the first quarter of 2014, we faced additional issues in the second quarter and our financial and operating results simply did not meet our expectations during the quarter," explained Jerry Atkin, SkyWest Inc’s chairman and CEO.