Jun 30, 2023

SkyWest Q2 2023 Earnings Report

Net income decreased compared to the same quarter last year, impacted by deferred revenue and reduced block hour production.

Key Takeaways

SkyWest reported a net income of $15 million for Q2 2023, a decrease from $54 million in Q2 2022. Revenue was $726 million, down 9% from $799 million in the previous year, with results reflecting the deferral of $60 million in revenue and a decrease in block hour production.

Reported Q2 2023 net income of $15 million, or $0.35 per diluted share.

Revenue was $726 million, a 9% decrease compared to Q2 2022.

Deferred $60 million in revenue during Q2 2023 due to modified terms relating to fixed monthly cash payments.

Repurchased 3.3 million shares of common stock for $94 million during Q2 2023.

Total Revenue
$726M
Previous year: $799M
-9.2%
EPS
$0.35
Previous year: $1.07
-67.3%
Gross Profit
$106M
Previous year: $173M
-38.8%
Cash and Equivalents
$862M
Previous year: $975M
-11.5%
Free Cash Flow
$182M
Previous year: $187M
-3.0%
Total Assets
$7.12B
Previous year: $7.34B
-3.0%

SkyWest

SkyWest

SkyWest Revenue by Segment

Forward Guidance

SkyWest anticipates adding two E175 aircraft in Q4 2023 and one E175 aircraft in 2024 under a flying contract with Delta Air Lines. SkyWest also anticipates adding one E175 aircraft in 2025 under a flying contract with Alaska Airlines.

Positive Outlook

  • Adding two E175 aircraft in Q4 2023 under Delta Air Lines contract.
  • Adding one E175 aircraft in 2024 under Delta Air Lines contract.
  • Adding one E175 aircraft in 2025 under Alaska Airlines contract.
  • Scheduled to operate a total of 239 E175 aircraft by the end of 2025.
  • Strong demand for products.

Challenges Ahead

  • Timing of future deliveries is subject to change.
  • Revenue decreased by 9% compared to Q2 2022.
  • Deferred $60 million in revenue during Q2 2023.
  • Block hour production decreased in Q2 2023 compared to Q2 2022.
  • Cash and marketable securities decreased from $1.0 billion at December 31, 2022 to $862 million at June 30, 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income