8-K - SKYW - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (date of earliest event reported): **** January 30, 2025

SKYWEST, INC.

(Exact Name of Registrant as Specified in its Charter)


Utah	0-14719	87-0292166
(State or other jurisdiction of	(Commission	(IRS Employer
incorporation or organization)	File Number)	Identification No.)


444 South River Road
St. George , Utah		84790
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code:

( 435 ) 634-3000

Not applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class		Trading Symbol(s)		Name of Each Exchange on which Registered
Common Stock, No Par Value		SKYW		The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).


	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

On January 30, 2025, SkyWest, Inc. (the “Company”) issued a press release announcing its financial results for the three months and year ended December 31, 2024. The full text of the Company’s press release is furnished herewith as Exhibit 99.1.

The information in this Current Report on Form 8-K (including Exhibit 99.1) is furnished pursuant to General Instruction B.2 to Form 8-K and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits.

<br><br><br><br>		<br><br><br><br>
Exhibit<br><br>Number	****	Title of Document
99.1		Press release dated January 30, 2025
104		Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	SKYWEST, INC.


Dated: January 30, 2025	By	/s/ Eric J. Woodward
		Eric J. Woodward, Chief Accounting Officer

Exhibit 99.1

NEWS RELEASE


CONTACT:	Investor Relations	Corporate Communications
	435.634.3200	435.634.3553
	Investor.relations@skywest.com	corporate.communications@skywest.com

SkyWest, Inc. Announces Fourth Quarter and Annual 2024 Profit

Fourth Quarter and Annual 2024 Summary

●	Q4 2024 pre-tax income of $134 million, net income of $97 million, or $2.34 per diluted share
●	Full year 2024 pre-tax income of $432 million, net income of $323 million, or $7.77 per diluted share
---	---
●	SkyWest reached a multi-year contract extension with American Airlines that allows for a total of 74 CRJ700s under agreement
---	---
●	SkyWest took delivery of four new E175 aircraft under a previously announced agreement with United
---	---

ST. GEORGE, UTAH, January 30, 2025 -- SkyWest, Inc. (NASDAQ: SKYW) (“SkyWest”) today reported financial and operating results for Q4 2024, including net income of $97 million, or $2.34 per diluted share, compared to net income of $18 million, or $0.42 per diluted share, for Q4 2023. SkyWest also reported net income of $323 million, or $7.77 per diluted share, for the 2024 year, compared to net income of $34 million, or $0.77 per diluted share, for the 2023 year.

Commenting on the results, Chip Childs, Chief Executive Officer of SkyWest, said, “We are honored to be named one of the World’s Most Admired™ Companies for 2025 by Fortune Magazine and pleased that our operational momentum continues. We are continuing to make improvements in returning daily scheduled service to smaller communities, increasing the utilization and efficiency of all fleet types, and quickly placing new aircraft deliveries into service. I want to thank the SkyWest team for their exceptional teamwork as we continue to execute on these growth opportunities, including progress with expanding our CRJ550 and E175 fleets.”

Financial Results

Revenue was $944 million in Q4 2024, up $192 million, or 26%, from $752 million in Q4 2023. SkyWest’s block hour production increased 20% in Q4 2024 compared to Q4 2023, which reflects improvements in captain availability since Q4 2023.

For purposes of revenue comparability year-over-year, SkyWest recognized $20 million of previously deferred revenue under its flying contracts during Q4 2024, compared to deferring $63 million of revenue during Q4 2023. As of December 31, 2024, SkyWest had cumulative deferred revenue of $322 million under its flying contracts on its balance sheet.

Operating expenses were $800 million in Q4 2024, up $76 million, or 10%, from $724 million in Q4 2023, driven by the increase in flight production year-over-year.

Capital and Liquidity

SkyWest had $802 million in cash and marketable securities at December 31, 2024, down from $836 million at September 30, 2024 and down from $835 million at December 31, 2023.

Total debt at December 31, 2024 was $2.7 billion, flat from September 30, 2024 and down from $3.0 billion at December 31, 2023. Capital expenditures during Q4 2024 were $186 million for the purchase of four debt-financed E175 aircraft, 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 47,000 shares of common stock for $4.9 million during Q4 2024 at an average price per share of $104.51. As of December 31, 2024, SkyWest had $48 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 table below summarizes E175 aircraft deliveries SkyWest received during 2024 and anticipated future deliveries during the periods indicated based on currently available information, which is subject to change.


		Completed	Anticipated
	****	2024	2025	****	2026	Total
Delta Air Lines		1	ꟷ		ꟷ	1
United Airlines		24^(1)^	7		8	39
Alaska Airlines		ꟷ	1		ꟷ	1
Total		25	8		8	41

(1)	20 of the 24 E175 deliveries completed in 2024 for United Airlines were partner-financed aircraft.

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, SkyWest Charter (“SWC”) 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 42 million passengers in 2024.

SkyWest will host its conference call to discuss its fourth quarter 2024 results today, January 30, 2025, 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/312398142. This press release and additional information regarding SkyWest, including access information for the digital rebroadcast of the fourth quarter 2024 results call, participation at investor conferences and investor presentations can be accessed at inc.skywest.com.

Forward Looking-Statements

In addition to historical information, this release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “forecasts,” "expects," "intends," "believes," "anticipates," “estimates,” "should," "likely" and similar expressions identify forward-looking statements. Such statements include, but are not limited to, statements about the continued demand for our product, the effect of economic conditions on SkyWest’s business, financial condition and results of operations, the scheduled aircraft deliveries, fleet expansion and anticipated fleet size for SkyWest in upcoming periods, expected production levels in future periods and associated staffing challenges, pilot attrition trends, SkyWest’s coordination with major airline partners to optimize the delivery of aircraft under previously announced agreements and quickly placing new aircraft deliveries into service, the expected terms, timing and benefits related to SkyWest’s leasing, strategic partnership and joint venture transactions, scheduled flight service to smaller communities, increasing the utilization and efficiency of all fleet types as well as SkyWest’s future financial and operating results, plans, objectives, expectations, estimates, intentions and outlook, and other statements that are not historical facts. All forward-looking statements included in this release are made as of the date hereof and are based on information available to SkyWest as of such date. SkyWest assumes no obligation to update any forward-looking statements unless required by law. Readers should note that many factors could affect the future operating and financial results of SkyWest and could cause actual results to vary materially from those expressed in forward-looking statements set forth in this release. These factors include, but are not limited to: the challenges of competing successfully in a highly competitive and rapidly changing industry; developments associated with fluctuations in the economy and the demand for air travel, including related to inflationary pressures, and related decreases in customer demand and spending; uncertainty regarding potential future outbreaks of infectious diseases or other health concerns, and the consequences of such outbreaks to the travel industry, including travel demand and travel behavior, and our major airline partners in general and the financial condition and operating results of SkyWest in particular; the prospects of entering into agreements with existing or other carriers to fly new aircraft; uncertainty regarding timing and performance of key third-party service providers; ongoing negotiations between SkyWest and its major airline partners regarding their contractual obligations; uncertainties regarding operation of new aircraft; the ability to attract and retain qualified pilots, including captains, and related staffing challenges; the impact of regulatory issues such as pilot rest rules and qualification requirements; the ability to obtain aircraft financing; the financial stability of SkyWest’s major airline partners and any potential impact of their financial condition on the

operations of SkyWest; fluctuations in flight schedules, which are determined by the major airline partners for whom SkyWest conducts flight operations; variations in market and economic conditions; significant aircraft lease and debt commitments; estimated useful life of long-lived assets, residual aircraft values and related impairment charges; labor relations and costs; the impact of global instability; rapidly fluctuating fuel costs and potential fuel shortages; the impact of weather-related, natural disasters and other air safety incidents on air travel and airline costs; aircraft deliveries; uncertainty regarding ongoing hostility between Russia and the Ukraine, as well as Israel and Hamas, and the related impacts on macroeconomic conditions and on the international operations of any of our major airline partners as a result of such conflict; and other unanticipated factors. Risk factors, cautionary statements and other conditions which could cause SkyWest’s actual results to differ materially from management’s current expectations are contained in SkyWest’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 4

SkyWest, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Dollars and Shares in Thousands, Except per Share Amounts)

(Unaudited)


	Three Months Ended					Year Ended
	December 31,					December 31,
	2024		****	2023		2024		****	2023
OPERATING REVENUES:
Flying agreements	$	912,845		$	728,267	$	3,412,798		$	2,834,397
Lease, airport services and other		31,557			23,520		115,122			101,035
Total operating revenues		944,402			751,787		3,527,920			2,935,432

OPERATING EXPENSES:
Salaries, wages and benefits		380,493			331,956		1,463,932			1,322,615
Aircraft maintenance, materials and repairs		202,308			190,271		712,642			673,453
Depreciation and amortization		94,534			95,237		383,880			383,115
Aircraft fuel		22,193			23,340		87,409			85,913
Airport-related expenses		24,771			18,992		85,836			72,640
Aircraft rentals		1,332			1,452		5,257			25,507
Other operating expenses		74,695			62,917		294,307			268,120
Total operating expenses		800,326			724,165		3,033,263			2,831,363
OPERATING INCOME		144,076			27,622		494,657			104,069

OTHER INCOME (EXPENSE):
Interest income		11,835			12,167		47,961			43,928
Interest expense		(27,737)			(31,049)		(114,340)			(130,930)
Other income, net		5,432			15,698		3,865			23,242
Total other expense, net		(10,470)			(3,184)		(62,514)			(63,760)

INCOME BEFORE INCOME TAXES		133,606			24,438		432,143			40,309
PROVISION FOR INCOME TAXES		36,229			6,922		109,181			5,967
NET INCOME	$	97,377		$	17,516	$	322,962		$	34,342

BASIC EARNINGS PER SHARE	$	2.42		$	0.43	$	8.02		$	0.78
DILUTED EARNINGS PER SHARE	$	2.34		$	0.42	$	7.77		$	0.77

Weighted average common shares:
Basic		40,317			40,706		40,262			43,940
Diluted		41,702			41,776		41,547			44,599

SkyWest, Inc. and Subsidiaries

Summary of Consolidated Balance Sheets

(Dollars in Thousands)

(Unaudited)


	December 31,		****	December 31,
	2024		****	2023
Cash and marketable securities	$	801,628		$	835,223
Other current assets		315,439			296,673
Total current assets		1,117,067			1,131,896

Property and equipment, net		5,521,796			5,405,685
Deposits on aircraft		65,612			77,282
Other long-term assets		435,392			411,430
Total assets	$	7,139,867		$	7,026,293

Current portion, long-term debt	$	535,589		$	443,869
Other current liabilities		894,002			810,423
Total current liabilities		1,429,591			1,254,292

Long-term debt, net of current maturities		2,136,786			2,562,183
Other long-term liabilities		1,164,709			1,096,316
Stockholders' equity		2,408,781			2,113,502
Total liabilities and stockholders' equity	$	7,139,867		$	7,026,293

SkyWest, Inc. and Subsidiaries

Additional Operational Information (unaudited)

SkyWest’s fleet in scheduled service or under contract by aircraft type:


	****	December 31, 2024	****	September 30, 2024	****	December 31, 2023
E175 aircraft		262		258		237
CRJ900 aircraft		36		36		41
CRJ700 aircraft ^(1)^		119		109		118
CRJ200 aircraft		75		81		89
Total aircraft in service or under contract		492		484		485

(1)	Includes CRJ550 aircraft, a 50-seat configuration of the CRJ700 aircraft.

As of December 31, 2024, SkyWest leased 35 CRJ700/CRJ550s and five CRJ900s to third parties and had 18 CRJ200s that are configured for service under SWC operations (these aircraft are excluded from the table above).

Selected operational data:


	For the three months ended December 31,						For the year ended December 31,
Block hours by aircraft type:	2024		2023		% Change		2024		2023		% Change
E175s	211,519		177,104		19.4	%	792,318		677,886		16.9	%
CRJ900s	23,711		17,198		37.9	%	84,883		76,588		10.8	%
CRJ700s	68,506		59,820		14.5	%	244,909		218,059		12.3	%
CRJ200s	46,582		36,632		27.2	%	169,930		167,910		1.2	%
Total block hours	350,318		290,754		20.5	%	1,292,040		1,140,443		13.3	%


Departures	206,588		177,433		16.4	%	766,742		691,962		10.8	%
Passengers carried	11,231,510		9,925,655		13.2	%	42,335,302		38,597,309		9.7	%
Adjusted flight completion	99.9	%	99.9	%	—	pts	99.9	%	99.9	%	—	pts
Raw flight completion	99.0	%	99.5	%	(0.5)	pts	98.9	%	98.8	%	0.1	pts
Passenger load factor	82.2	%	83.4	%	(1.2)	pts	82.8	%	83.6	%	(0.8)	pts
Average trip length	443		445		(0.4)	%	464		453		2.4	%

Adjusted flight completion percent excludes weather cancellations. Raw flight completion includes weather cancellations.