SkyWest Swings To Full Year Loss

SkyWest announced its fourth quarter and full year results on Thursday showing a loss for both periods.

The parent of SkyWest Airlines and ExpressJet reported a USD$270.2 million net loss for the fourth quarter to end December 2016, from a $40.4 million profit in the previous year period. The loss was due to a one-off $465.6 million aircraft asset impairment charge during the quarter.

Operating revenue for the quarter rose slightly to $758 million from 4Q15’s $752.7 million, but expenses were up at $1.16 billion. Without the special items, operating expenses would have been $696.8 million, against 2015’s $700.5 million.

For the full year 2016, SkyWest’s net loss was $161.6 million on revenue of $3.12 billion.

During the year SkyWest carried 53.5 million passengers, a 4.8 percent drop from the previous year. Revenue (in revenue passenger miles) was down 5.6 percent on a capacity drop of 5 percent in available seat miles. Resulting load factor was down 0.5 of a percentage point at 82.1 percent.

Cost per available seat mile ballooned 76.8 percent in the fourth quarter and 20.7 percent for the full year because of the charge.

“Our improved 2016 results were largely due to the addition, removal or redeployment of over 125 aircraft across our base fleet of 652 aircraft,” SkyWest chief executive Chip Childs said in a statement.

“The evolution of our fleet continues to reduce our risk, improve our capital flexibility and ensure we adapt to our major partners' long and short-term needs.”

SkyWest Airlines operates services under contract to several major US airlines including American, Delta and United.