SkyWest Inc. reported significant financial performance improvements for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Operating revenues for the third quarter reached $912.8 million, a 19.1% increase from $766.2 million in the prior year. For the nine-month period, revenues rose to $2.58 billion, up 18.3% from $2.18 billion. This growth was primarily driven by a 20.3% increase in capacity purchase agreements flight operations revenue, which totaled $624.3 million for the quarter.
Net income for the third quarter was $89.7 million, or $2.16 per diluted share, compared to $23.5 million, or $0.55 per diluted share, in the same quarter of 2023. For the nine months, net income surged to $225.6 million, a substantial increase from $16.8 million in the previous year. The effective tax rate for the nine months ended September 30, 2024, was 24.4%, influenced by higher pre-tax earnings.
Operating expenses also increased, with total expenses for the third quarter rising to $781.4 million, up 9.0% from $716.9 million in 2023. Salaries, wages, and benefits accounted for a significant portion of this increase, rising by 13.3% due to higher direct labor costs associated with increased flight operations.
SkyWest's total assets as of September 30, 2024, were $6.96 billion, a slight decrease from $7.03 billion at the end of 2023. The company reported total stockholders' equity of $2.31 billion, up from $2.11 billion at the end of the previous fiscal year. Cash and cash equivalents increased to $177.6 million, compared to $148.3 million at the end of 2023.
Strategically, SkyWest has been active in expanding its fleet and partnerships. The company entered agreements with United Airlines to place 40 used CRJ550 aircraft under multi-year contracts and is in the process of acquiring 11 used CRJ550 aircraft while converting 29 CRJ700s to CRJ550s. The anticipated in-service date for these aircraft is between late 2024 and the end of 2026.
SkyWest's business model continues to focus on code-share agreements with major airlines, which accounted for approximately 86.8% of the company’s flying agreements revenue for the nine months ended September 30, 2024. The company also reported a 10.3% increase in passengers carried during the third quarter, totaling over 11.26 million.
Overall, SkyWest's financial results reflect a robust recovery and growth trajectory, supported by strategic fleet enhancements and increased operational capacity.
About SKYWEST INC
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