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FOR IMMEDIATE RELEASE: February 11, 2009
SKYWEST ANNOUNCES FOURTH QUARTER AND YEAR-END 2008 EARNINGS
St. George, UtahSkyWest, Inc. (SkyWest) (NASDAQ: SKYW) today reported operating revenues of $743.3 million for the quarter ended December 31, 2008, compared to $854.7 million for the same period last year. SkyWest also reported net income of $21.2 million or $0.37 per diluted share, for the quarter ended December 31, 2008, compared to $40.9 million of net income or $0.66 per diluted share, for the same period last year.
SkyWest reported operating revenues of $3.50 billion for the year ended December 31, 2008, compared to $3.37 billion for the same period last year. SkyWest also reported net income of $112.9 million or $1.93 per diluted share, for the year ended December 31, 2008, compared to $159.2 million of net income, or $2.49 per diluted share for the same period last year.
The significant items affecting SkyWests financial performance during the fourth quarter of 2008 are outlined below:
Total operating revenues for the fourth quarter of 2008 decreased primarily as a result of decreased fuel cost reimbursements of approximately $83.0 million paid by SkyWests major partners. For financial reporting purposes, those reimbursements are recorded as operating revenues under SkyWests contract flying arrangements. Additionally, SkyWests operating revenues were reduced by approximately $30.0 million due, in part, to reductions in the flight schedules by SkyWests major partners which resulted in block hour reductions of 12.0%, compared to the fourth quarter of 2007. SkyWest produced 320,932 block hours for the quarter ended December 31, 2008, compared to 364,540 block hours for the same period last year.
Total operating expenses and interest per available seat mile (ASM) for the fourth quarter of 2008, excluding fuel expense of $198.0 million or $0.039 per ASM, increased approximately 13.5% to $0.101 from $0.089 for the comparable quarter of 2007. The increase was due primarily to the reduction in SkyWests block hours, as scheduled by SkyWests major partners, resulting in a 12.3% reduction in ASM production, while at the same time SkyWest did not experience a corresponding reduction in total operating expenses and interest. Total operating expenses and interest, excluding fuel expense, was $517.1 million for the quarter ended December 31, 2008, compared to $518.5 million for the quarter ended December 31, 2007. In addition, maintenance expense increased $20.7 million from $80.3 million for the quarter ended December 31, 2007, to $100.9 million for the quarter ended December 31, 2008. Approximately $15.3 million of the maintenance expense increase was due to the timing of engine maintenance events whereby SkyWest is directly reimbursed for the engine maintenance expense under its contract flying arrangements with its major partners. Additionally, the increase in cost per ASM was the result of SkyWest incurring higher non-engine related direct maintenance costs that are primarily due to the general aging of its fleet.
Interest income decreased approximately $3.4 million during the quarter ended December 31, 2008, compared to the same quarter of 2007 as the result of general reductions in interest rates on short term investments.
Previously, SkyWest announced that it had amended and modified its Airline Services Agreement with Midwest and reduced aircraft operating under this agreement from 21 aircraft to 12 aircraft. SkyWest also agreed to defer a portion of the weekly payments due from Midwest and has deferred a total amount of $9.0 million as of December
The following information was filed by Skywest Inc (SKYW) on Wednesday, February 11, 2009 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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