Posted on: 14 February 2013 by Mark Howells
SkyWest, Inc. has reported net income of $13.9 million for the quarter ended 31 December 2012, compared with a net loss of $18.0 million for the same period in 2011.
SkyWest’s operating and financial results for 4Q12 therefore reflect a significant improvement compared with the same period of 2011, primarily as a result of recording additional revenues from an increase in block hour production and continuing to reduce its cost structure as part of its profit improvement plan.
For financial reporting purposes though, the increased revenues were offset by lower reimbursement payments for fuel and maintenance overhaul expenses under contracts with SkyWest’s major partners, resulting in a net decrease in total operating revenues. These efforts resulted in a $53.3 million improvement in pre-tax income in 4Q12, compared with 4Q11. This is the fourth quarter in a row where reported results have exceeded market estimates.
Commenting on the results, Jerry Atkin, SkyWest’s chairman and CEO, remarked, “We are very pleased with our operating and financial results for the quarter ended 31 December 2012. This is a solid result for a quarter that can typically be very challenging. We continue to make positive progress in our cost reduction efforts that are resulting in improved profits, quarter over quarter.”
SkyWest has increased its total fleet to 744 aircraft as of 31 December 2012, compared with 732 aircraft as of 31 December 2011.