Posted on: 21 April 2014 by Mark Howells
SkyWest, Inc. has updated its previously expressed outlook regarding the effect of extreme weather conditions and other factors on its anticipated financial and operating results for the quarter which ended on 31 March 2014.
During SkyWest’s fourth quarter earnings results call, held on 13 February 2014, management expressed their caution regarding the anticipated negative impact of a series of severe weather events on SkyWest’s operations during the period between 1 January 2014 and 12 February 2014. Subsequent to 12 February 2014, SkyWest’s operations continued to be negatively impacted by severe weather for the next several weeks and SkyWest experienced additional flight cancellations resulting in operating losses.
SkyWest estimates the total negative impact from severe weather to be approximately $30 million pre-tax (including missed contract incentives) for the quarter ended 31 March 2014, during which approximately 21,000 total flights were cancelled because of severe weather. SkyWest experienced other challenges in that quarter and, as a result, currently estimates that its fully-diluted loss per share will range from $0.46-$0.41 for the quarter.
SkyWest cautioned, however, that these estimates are preliminary and are subject to modification or revision in the course of completing SkyWest’s quarterly financial review procedures. A more detailed explanation will be given when SkyWest announces its reviewed financial results during May 2014.