ST. GEORGE, UTAH-- SkyWest, Inc. (NASDAQ: SKYW) ('SkyWest') today reported financial and operating results for Q1 2024, including net income of $60 million, or $1.45 per diluted share, compared to net loss of $22 million, or $0.45 loss per share, for Q1 2023.
First Quarter 2024 Summary
Q1 2024 pre-tax income of $80 million, net income of $60 million, or $1.45 per diluted share
SkyWest took delivery of three of the 20 E175 partner-financed aircraft under a previously announced agreement with United Airlines
Block hour production increased 5% in Q1 2024 compared to Q1 2023
Commenting on the results, Chip Childs, Chief Executive Officer of SkyWest, said, 'Our ability to meet our partners' demand for additional production continues to increase as our captain availability has improved. We are also pleased with how our teams performed under challenging winter conditions during the first quarter.'
Financial Results
Revenue was $804 million in Q1 2024, up $112 million, or 16%, from $692 million in Q1 2023.
SkyWest's block hour production increased 5% in Q1 2024 compared to Q1 2023, which reflects improvements in captain availability since Q1 2023.
For purposes of revenue comparability year-over-year, SkyWest recognized $1 million of previously deferred revenue during Q1 2024 under its flying contracts, compared to deferring $63 million of revenue under its flying contracts during Q1 2023. As of March 31, 2024, SkyWest had cumulative deferred revenue of $366 million on its balance sheet.
Operating expenses were $704 million in Q1 2024, up $7 million, or 1%, from $697 million in Q1 2023. The increase in operating expenses was primarily driven by the 5% increase in block hour production year-over-year, offset by lower aircraft rent expense from early lease buyouts SkyWest executed during 2023.
Capital and Liquidity
SkyWest had $821 million in cash and marketable securities at March 31, 2024, down from $835 million at December 31, 2023.
Total debt at March 31, 2024 was $2.9 billion, down from $3.0 billion at December 31, 2023.
Capital expenditures during Q1 2024 were $38 million for the purchase of spare engines and other fixed assets.
Under its previously announced share repurchase program authorized by the SkyWest Board of Directors in May 2023, SkyWest repurchased 136,000 shares of common stock for $8.7 million during Q1 2024 at an average price per share of $64.21. As of March 31, 2024, SkyWest had $82 million of remaining availability under its current share repurchase program.
Commercial Agreements
SkyWest is coordinating with its major airline partners to optimize the timing of upcoming announced fleet deliveries. The anticipated E175 future delivery dates summarized below are based on currently available information and are subject to change.
2024 2025 2026 Total
Delta Air Lines 1 ? ? 1
United Airlines(1) 21 7 8 36
Alaska Airlines ? 1 ? 1
Total 22 8 8 38
(1) 17 of the E175 deliveries scheduled for 2024 are partner-financed.
By the end of 2026, SkyWest is scheduled to operate a total of 278 E175 aircraft.
About SkyWest
SkyWest, Inc. is the holding company for SkyWest Airlines and SkyWest Leasing, an aircraft leasing company. SkyWest Airlines has a fleet of approximately 500 aircraft connecting passengers to over 240 destinations throughout North America. SkyWest Airlines operates through partnerships with United Airlines, Delta Air Lines, American Airlines, and Alaska Airlines carrying more than 38 million passengers in 2023.
SkyWest will host its conference call to discuss its first quarter 2024 results today, April 25, 2024, at 2:30 p.m. Mountain Time. The conference call number is 1-888-330-2455 for domestic callers, and 1-240-789- 2717 for international callers. Please call up to ten minutes in advance to ensure you are connected prior to the start of the call. The conference call will also be available live on the Internet at https://events.q4inc.com/attendee/364879427. This press release and additional information regarding
SkyWest, including access information for the digital rebroadcast of the first quarter 2024 results call, participation at investor conferences and investor presentations can be accessed at inc.skywest.com.
See full release at: https://inc.skywest.com/assets/Uploads/PressReleases/SKYW-Q1-2024-Earnings-Release-Final.pdf
SKYWEST, INC. 
